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How to invest in a nifty index fund directly? I R Wealth Blog

the nifty index fund is like a mutual fund whose stock portfolio comprises companies' stocks that feature in the nifty index.<br><br>

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How to invest in a nifty index fund directly? I R Wealth Blog

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  1. For a general everyday investor, investing periodically in an index fund is the best option for their long- term investing journey that can help them outperform most investment professionals. Investment in an index fund is one of the best strategies for reducing risk due to market fluctuations. Now you might be wondering what these index funds are, What is nifty index funds, should I invest in nifty index funds, and How to buy nifty 50 index funds. We have some valuable information below that can help you clear up some issues. What is Nifty index fund? In simple words, the nifty index funds is like a mutual fund whose stock portfolio comprises companies’ stocks that feature in the Nifty index. You invest in nifty index funds by investing in the stocks of the companies that comprise the Nifty index. Unlike most other index funds, the Nifty index fund’s components match the components of the Nifty index exactly. Irrespective of the market conditions, this fund follows the index’s performance. Now because these funds give you such a broad exposure like if you invest in nifty 50 index fund, you get the exposure of 50 different companies belonging to different sectors. Index funds offer a solid diversification to one fund and mitigate the sectoral risk because of this. One of the most general questions a new investor asks is How to buy nifty 50 index fund and about its performance. If we see the record, we can see that the nifty index has been on an upward trend for a very long period, making it very safe to invest in nifty 50 index fund. What factors go into choosing the stocks for the nifty 50? In order to be a part of NIFTY 50, one of the main requirements is to be listed on the National Stock Exchange (NSE). Additionally, companies should be able to trade their shares on NSE’s Futures & Options segment so that investors can invest in nifty 50 index funds. The top 50 large-cap companies are selected from the universe of large-cap companies listed on the NSE using their free-float market capitalisation. A company’s free-float market cap is calculated by multiplying its stock price by the number of shares easily accessible in the market. Moreover, to allow people to invest in nifty index funds, liquidity also plays a role. It is important that stocks included in the NIFTY 50 index are easy to buy and sell, as well as have high trading volumes. There are no fixed 50 companies in the NIFTY 50 index. NIFTY 50s rebalancing removes stocks whose market value has fallen or whose listings have been suspended or delisted. Stocks that were removed would then be replaced by emerging stocks whose market cap would have increased. This gives a fair opportunity to the investors willing to invest in nifty 50 index fund. How to invest in a nifty index fund directly?

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