Investing in Nifty 50: A Smart Way to Grow Your Wealth
10 Oct 2024
All About the Nifty 50
The Nifty 50 is a key stock market index in India, representing top 50 companies by market capitalization. It offers investors diversified exposure to India's leading companies and is widely used for tracking market performance and investment.
Five Key Feature Of The Nifty 50
1. Benchmark Index :
The Nifty 50 represents top 50 companies listed on the NSE based on their market cap. It serves as a benchmark for the overall performance of the Indian equity markets.
2. Historical Significance :
Launched in 1996, the index has since become one of the most tracked indices in India and is a key indicator of the health of the Indian equity markets.
3. Rebalancing Frequency :
The composition of the Nifty 50 is reviewed and rebalanced semi-annually, usually in March and September which makes it a true reflection of the current market leaders.
4. Free Float Market Capitalization :
The index uses the free-float market cap method, and only considers the shares available for trading by the public, excluding shares held by promoters.
5. How to invest :
Investors can invest in the Nifty 50 through various financial instruments, like ETFs, index funds, futures and options.
Nifty Vs Different Asset Classes
GRAPHS
Nifty has outperformed gold, silver and real estate over 28 years delivering 12.31% CAGR.
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