How to invest in Nifty 50 for long term?

In this article we will tell you “How to invest in Nifty 50 for long term?”. Nifty 50 is an index which was established in 1996 by NSE (National Stock Exchange). You can say that Nifty 50 reflects the economy of India. Only 50 such companies have been included in Nifty which are veteran companies of India for a long time. If you are thinking of investing in Nifty, then let us tell you in detail how you can invest in long term in Nifty.

How to invest in Nifty 50 for long term?

As you know Nifty 50 is an index. And we cannot invest directly in the index. To invest in Nifty, you can invest through different instruments. So let us know in which ways you can invest in Nifty 50.

Invest through ETF

The full form of ETF is Exchange Traded Fund. You cannot invest in Nifty directly, but you can invest in Nifty 50 through ETF. You will be able to invest in Nifty by buying NIFTYBEES with the help of your broker. You can buy or sell ETFs at any time, at any price. If you trust the country's economy, then you can buy ETFs without much hassle. If you invest for a long time, you will also get good returns. If you invest in Nifty in fall, then you will get profit Will be even more. To buy ETF (Nifty bees) you need to open a demat account.

NIFTYBEES Long Term Chart

You can see the chart in the picture above. As Nifty goes up, the price of Nifty bees will also go up. And you can see how much profit you would have got from long-term investment. Investing in index is considered very good for the long term. No matter how many ups and downs there are in the economy, in the long run you will see profits in Nifty 50. If you know about support and resistance, then you can make good profits by investing in downturns.

Invest through Mutual Fund

Nowadays every private and government bank is offering the option to buy mutual funds. If you do not want to buy ETF, you can also invest in Nifty 50 through mutual funds. There are many types of mutual funds which invest directly in Nifty 50. SBI, HDFC and UTI Nifty 50 index funds are quite popular. For this you will not even need to open a demat account.

A NAV (Net Asset Value) value is maintained in mutual funds. You will not get your desired price in mutual funds. You must invest at the same price, which will be the value of NAV at the end of the day. Whereas in ETF you can invest at any price. As the price of Nifty increases, the price of your purchased fund will also increase, and you will get profit in the long term.

Direct investment in Nifty 50 shares

If you do not want to invest in Nifty through ETFs and mutual funds, then you can invest directly in the shares of 50 companies included in Nifty according to their weightage. Suppose you have one lakh rupees, and you want to invest in Nifty, then you can buy shares of all the 50 companies of Nifty one by one.

But the biggest problem you will face in this is that you will have to keep track of which company is being removed from Nifty or which one is being included. And accordingly, you will also have to sell your purchased shares and buy shares of the new company. This is the disadvantage of investing directly in Nifty. To buy shares directly you need a demat account.

Benefits of investing in Nifty 50 

• Investing in Nifty means investing in India's economy.
• Stock may be zero, but index will not be zero.
• Benefit of higher returns from FD in long run
• There is no need to see Fundamental.
• The exchange, as per its discretion, excludes bad shares and gives place to good shares in Nifty.

Conclusion:

The conclusion of this article is that you can invest in Nifty 50 for long term through ETFs and Mutual Funds. Apart from this, you can also directly buy shares of all 50 companies of Nifty according to their weightage. You can think of investing in Nifty according to the method you like. For direct route and ETF, it is mandatory for you to open a demat account whereas in mutual funds, you can invest in Nifty 50 without opening a demat account.

FAQ

Can I invest in Nifty 50 in the long term?

Yes, you can invest in Nifty 50 for long term through ETF or mutual fund.

Is it right to invest in the long term?

Yes, the longer you invest in the stock market, the more profit you will make. All you must keep in mind is to invest only in good stocks for the long term.

Is it safe to invest in Nifty 50?

Nifty 50 is a popular index of India in which the best 50 companies of India are included. Has gone. In the long run the index will always go up, so it makes sense to invest in it.

What is the 1-year average return of NIFTY 50?

The Nifty overall has generated returns of 8.59% over the last one year. However, that is just the statistical average of Nifty 50 stocks. Out of the 50 stocks in the Nifty, a total of 38 stocks have generated positive returns in the last one year while only 11 stocks have given negative returns in the last one month.

Which fund is best for NIFTY 50?

Best Nifty 50 Index Funds in India 2024Bandhan Nifty 50 Index Fund.

• UTI NIFTY 50 Index Fund-Growth Option- Direct.
• ICICI Prudential Nifty 50 Index Fund.
• Nippon India Index Fund Nifty 50 Plan Direct-Growth.
• HDFC Index Fund Nifty 50 Plan-Direct Plan.
• TATA Nifty 50 Index Fund.
• SBI Nifty Index Fund Direct Growth.

Can I invest 500 rupees in Nifty 50?

Investing 500 rupees in a Systematic Investment Plan (SIP) in Nifty Bees (Nifty Exchange Traded Fund) can be a good way to start building your investment portfolio. Nifty Bees tracks the Nifty 50 index, which represents the performance of the top 50 companies in India's stock market.