What is Nifty 50?

(Nifty National index 50)







 There is an index contains the top 50 markets having excellent capitalization who's price value affects India most. In another word, it is the top 50 companies' s stock market data based index who shows the performance of 50 Companies Stock fundamental. The price value of Nifty depends upon some total of the price values of 50 Companies.

 What is Sensex?

 There is an index contains the top 30 markets having excellent capitalization who's price value affects India most. Like Nifty this price value also varies the economic activity of those 30 Companies
So we confirmed that index surely gives high return for a long term investment.

Here is some example of indexes.
Nifty started at 1000 and trading above 10,000. It is now 9000 Due to COVID-19.
For long it has given pretty much return to investors.






The second appearance is of Us index Which is Dow jones industrial avg. It started at 800 and now trading on 28000. It is now trading 23,000








Another one is the World index which is extracted from the world economic stock market and shows the world's stock market index performance.
Now the question is how we will invest in Nifty or Sensex. Because if you ll go through brokerages or a website you cant get the chance to invest.

So there are two different ways that you can invest in the index.
  • MUTUAL FUND
  • ETF


Mutual fund:

There are so many different kinds of mutual funds, index mutual fund is one of them. These are the found who track the indexes like nifty and Sensex and give returns corresponding to Nifty. These found are gives return approximately the same to the Nifty. Notice THE INDEX MUTUAL FUND GIVES APPROXIMATELY SAME NOT EXACT AS NIFTY. Because mutual fund saves some portion of the amount in liquid form for emergency during withdrawal. 

 Index mutual fund works in a mutual fund that is regulated by AMC. So you have to invest through AMC.


ETF:
Exchange-traded fund

Another option is you invest in the ETF. ETF is the same as stock. you can invest directly ETF of Nifty 50.  ETF is very similar to Index mutual fund who tracks the price ratio of Nifty50 and gives accurate same return as Nifty50.

 ETF invests in indexes but operated in the exchange. in other words, it is traded like a stock. In ETF you have to invest through the broker.

 Here you must have a brokerage account or demate account. You have to go through a Broker and open a Demate account and Choose an Index where you want to invest.

 

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