We all know that both wealth and health are very important in life. But the pharmaceutical sector is a sector in which you invest in a complete basket of health-related stocks and enhance your wealth.
The sector that has shown the most progress in the stock market since COVID-19 is the pharmaceutical sector. During the time of Covid-19, the stock market was falling badly in every country.
But the pharmaceutical sector was one such sector which was consolidating rather than falling at times and in fact, some stocks were even giving good returns.
The money of those who have invested in the pharmaceutical sector over time has multiplied and is continuously increasing.
If you also have difficulty choosing the right pharmaceutical stock, then you can invest in Nifty Pharma ETF. Let us discuss Nifty Pharma ETF today.
What is Nifty Pharma ETF
Nifty Pharma ETF is an index of all the big and very good pharmaceutical companies. Through this ETF, instead of investing in a single stock, you can invest in this entire index simultaneously.
We all know that after COVID-19, the prices of shares of companies in the pharmaceutical sector have increased significantly.
Now it has become very difficult to create a portfolio for a pharmaceutical sector company and that too on a limited budget.
But instead of making a portfolio by buying shares of different pharmaceutical companies, we can simply invest in Nifty Pharma ETF at a very low price.
As soon as we invest in it, our money gets invested in different pharmaceutical companies and that too with the right percentage.
How many types of Nifty Pharma ETFs are there?
Many companies in India invest in this ETF. But the index of all the companies is the same.
While investing, you have to remember that the company you are investing in this ETF should have the highest volume and market cap.
The advantage of high volume and market cap is that when you sell the stock of this ETF it sells easily. If the volume is not high then it is possible that you may not get a buyer to buy the stock of this ETF.
How many companies are there in Nifty Pharma ETF and what is their percentage?
Nifty Pharma Eight includes 20 companies which are the best and best return-giving companies in the pharmaceutical sector.
We have shown all these companies in the list given below and also told what percentage contribution of which company is in this ETF.
Nifty Pharma ETF Returns
If we talk about the kind of returns that Nifty Pharma ETF has given us in the recent past, then this is a very good figure.
Let us talk about the returns of this ETF given in the past which are as follows.
- If we talk about the returns given by this ETF in the last 6 months, then it is 24.36%.
- If we talk about what percentage of return was given in this ETF last year, then let us tell you that this ETF has given a return of 62.07% in the last year.
If we talk about these returns, we see that even many big companies do not have such great returns as the ones given to us in this ETF.
If we make this investment in any stock, then our risk factor also increases, otherwise, this stock may fall too much and our returns may turn negative instead of positive.
Investing money in ETF means that we limit our risk too much because our investment is safe. After all, an index can never decline for a long time and if we look at the history, every index will give us good returns in the future.
Check the Google chart for the latest price update on this ETF.
How to invest in Nifty Pharma ETF?
You invest in Nifty Pharma ETF just like a normal stock, we can also trade ETF like a stock.
To invest in this ETF you have to follow these steps.
- Log in to the broker with which you manage your demat account.
- After logging in, search for Nifty Pharma ETF.
- Many such companies will be open in front of you through which you can invest in this ETF.
- In the same way, as you simply buy or sell a stock, the process of buying and selling an ETF is also the same. If you want to buy the ETF then click on the buy button and enter your quantity and buy it. If you want to sell it to someone then simply click on the sell button.
- As we said earlier you have to invest in ETF which has a high volume and market cap. This will give you the advantage that as soon as you sell your PF after getting target.
Conclusion
Nifty Pharm ETF is a great option for all those who have a low budget but want to invest in the pharmaceutical sector.
This sector is growing sector because just as diseases come and go, the medical line also keeps growing.
Medical line Growth in income means that if you have also invested in this line, Your money will also grow.
Note- Keep in mind that before investing in any ETF, you should get complete information about the asset and do market research to get good benefits and avoid losses.