As soon as it comes to ETF, the first name that comes to our mind is Nifty 50 ETF.
After all, what is it that everyone finds investing in Nifty 50 ETF to be the safest? Let us discuss this et today and see why people like this ETF so much.
What is the Nifty 50 ETF?
Investing money in the Nifty 50 ETF means that you are directly investing money in the economic growth of India.
We are saying this because, in Nifty 50, only those companies are there that have the best market cap and are very stable companies.
The special thing about this ETF is that it runs exactly on the Nifty 50 index. The companies that are in the Nifty 50 index are the same companies that are in this ETF.
Just as the companies that perform poorly are removed from the Nifty 50 index, the same happens in the Nifty 50 ETF as well.
Why is the Nifty 50 ETF beneficial?
As we talked about in the beginning if you invest money in the Nifty 50 ETF then you invest money in the economy of the country.
Now investing money in this ETF is beneficial because we all know that even if the market takes a little correction, in the end, it has to go up.
If you open the chart of the Nifty 50 index, you will find that it has been continuously increasing.
Even if it goes down for some time, its trend remains upward. It is clear that if we look at the history of the Nifty 50 index, we have seen very good returns and we will continue to see very good returns in the future also.
It has been discussed what is Nifty 50 ETF, and now let us discuss how to invest in it.
How to invest in this ETF?
Investing in the Nifty 50 ETF is very easy. You can also invest in this ETF through any broker who is managing your demat account.
There is not a single company in India that invests in this ETF. There are many famous companies in this which invest your money in Nifty 50 index through Nifty 50 ETF.
Some of these major companies are Nippon, ICICI, HDFC, Aditya Birla Sun Life, Kotak, Mirae Asset, Axis, and Motilal Oswal,
If you want to invest in Nifty 50 ETF, then you can invest through any of these companies.
Is long-term investing better or short-term investing in this ETF?
Whether you do long-term investment or short-term investment in this ETF, it always benefits you. For this, we understand both long-term and short-term.
Long-term investment
This is a very good method of long-term investment in any ETF, we use the same method in this ETF also.
On the day you see the Nifty 50 in negative, you have to put some part of your investment in it. The day This ETF comes positive, you should not do anything.
You just have to keep repeating this method and the longer you keep investing, the better returns you will see on your capital.
Short Term Investment
The way we made long-term investments in this ETF, we can also make short-term investments in this manner.
In short-term investment, you just have to keep in mind that on which day Nifty 50 goes most negative, then you have to invest in this ETF.
And the day you achieve your target like 3% or 5%, then you can book your profit by selling this ETF.
In which companies you can invest money through Nifty 50 ETF?
If you invest in Nifty 50 then you invest money in these companies.
- Asian Paints Ltd
- Britannia Industries Ltd
- Cipla Ltd
- Eicher Motors Ltd
- Nestle India Ltd
- Grasim Industries Ltd
- Hero MotoCorp Ltd
- Hindalco Industries Ltd
- Hindustan Unilever Ltd
- ITC Ltd
- Larsen & Toubro Ltd
- Mahindra & Mahindra Ltd
- Reliance Industries Ltd
- Tata Consumer Products Ltd
- Tata Motors Ltd
- Tata Steel Ltd
- Wipro Ltd
- Apollo Hospitals Enterprise Ltd
- Dr Reddys Laboratories Ltd
- Titan Company Ltd
- State Bank of India
- Bharat Petroleum Corporation Ltd
- Kotak Mahindra Bank Ltd
- UPL Ltd
- Infosys Ltd
- Bajaj Finance Ltd
- Adani Enterprises Ltd
- Sun Pharmaceuticals Industries Ltd
- JSW Steel Ltd
- HDFC Bank Ltd
- Tata Consultancy Services Ltd
- ICICI Bank Ltd
- Power Grid Corporation of India Ltd
- Maruti Suzuki India Ltd
- IndusInd Bank Ltd
- Axis Bank Ltd
- HCL Technologies Ltd
- Oil & Natural Gas Corpn Ltd
- NTPC Ltd
- Coal India Ltd
- Bharti Airtel Ltd
- Tech Mahindra Ltd
- LTIMindtree Ltd
- Divis Laboratories Ltd
- Adani Ports & Special Economic Zone Ltd
- HDFC Life Insurance Company Ltd
- SBI Life Insurance Company Ltd
- UltraTech Cement Ltd
- Bajaj Auto Ltd
- Bajaj Finserv Ltd
Will these 50 companies always be in the Nifty 50 ETF?
As we told in the beginning this ETF consists of the same companies which are in the Nifty 50 index.
Nifty 50 index includes only those companies that have the best market cap and which are very stable and growing companies.
If a company does not perform well then it is taken out of the Nifty 50 index and in its place a company is taken which is growing very well.
So the company in which you had invested in this ETF may continue to exist, these companies keep changing.
Conclusion
In this article, we understood why investors invest mostly in Nifty 50 ETFs. The mindset of investors is that if India grows then their money will grow, hence they prefer to invest in this ETF.
Another purpose of investing in this ETF is that one can also invest money in banks, sectoral companies, and the best companies in the country.
In the long run, better returns than the Nifty 50 ETF are not possible in any other ETF, but for this, you have to invest money for 10 to 15 years.
