Do you know the “Word” which make you rich in India?

In 1980, people who know the meaning and understanding of this term become milliorie in their lifetime. Let us understand and how to start your journey with the term “Nifty 50”. Most of Indians when hear the news “Nifty is going up or Nifty is reaching its high”, they think it is financial news and ignore that completely. Do all know what is Nifty 50 Index? It is as important as knowing who is Indian prime minister.

Let us explore what is is Nifty 50 Index, how it calculated, why is it important in indian economy and how we can start investing in Nifty Index as retail investors in the market. The NIFTY 50 index is a benchmark stock market index in India that comprises the top 50 companies listed on the National Stock Exchange (NSE) based on market capitalization.

Today market Nifty is 22000 rupees
In year 2000, it was traded around 1000 rupees,
In year 2010, it was traded around 5000 rupees
In year 2015, it was traded around 8000 rupees
in year 2020, covid time it reached from 12,000 to 8000 rupees
In year 2024, it reached it peak 22000 rupees.

Investment of 10000 rupees in 2000 would be 20 lakhs by 2024 in Nifty 50

The Nifty Index is calculated based on the free float market capitalization of the 50 constituent stocks India it includes HDFC bank, Reliance Industries, ICICI Bnak, Infosys, ITC and many more.. The complete list as of today,

1. HDFC Bank (HDFCBANK) 13.26% Financial Services
2. Reliance Industries (RELIANCE) 9.11% Oil & Gas
3. ICICI Bank (ICICIBANK) 7.42% Financial Services
4. Infosys (INFY) 5.89% Information Technology
5. ITC (ITC) 4.37% FMCG
6. Larsen & Toubro Ltd (L&T) 4.26% Construction
7. Tata Consultancy Services (TCS) 4.05% Information Technology
8. Axis Bank (AXISBANK) 3.38% Financial Services
9. Kotak Mahindra Bank (KOTAKBANK) 2.93% Financial Services
10. Bharti Airtel (BHARTIARTL) 2.90% Telecommunication
11. Hindustan Unilever (HINDUNILVR) 2.58% FMCG
12. State Bank of India (SBIN) 2.46% Financial Services
13. Bajaj Finance (BAJFINANCE) 2.15% Financial Services
14. Asian Paints (ASIANPAINT) 1.77% Consumer Durables
15. Mahindra & Mahindra (M&M) 1.67% Automobile
16. Titan Company (TITAN) 1.65% Consumer Durables
17. HCL Technologies (HCLTECH) 1.61% Information Technology
18. Maruti Suzuki India (MARUTI) 1.60% Automobile
19. Sun Pharma (SUNPHARMA) 1.50% Healthcare
20. NTPC (NTPC) 1.41% Power
21. Tata Motors (TATAMOTORS) 1.41% Automobile
22. Tata Steel (TATASTEEL) 1.18% Metals & Mining
23. UltraTech Cement (ULTRACEMCO) 1.18% Construction Materials
24. IndusInd Bank (INDUSINDBK) 1.08% Financial Services
25. Power Grid Corporation 1.08% Power
26. Bajaj Finserv (BAJAJFINSV) 1.03% Financial Services
27. Nestle India (NESTLEIND) 0.98% FMCG
28. Adani Enterprises (ADANIENT) 0.88% Metals & Mining
29. Coal India (COALINDIA) 0.88% Oil & Gas
30. Tech Mahindra (TECHM) 0.86% Information Technology
31. Oil & Natural Gas Corp. (ONGC) 0.86% Oil & Gas
32. Hindalco Industries (HINDALCO) 0.85% Metals & Mining
33. JSW Steel (JSWSTEEL) 0.84% Metals & Mining
34. Grasim Industries (GRASIM) 0.84% Construction Materials
35. HDFC Life Insurance Co. 0.84% Financial Services
36. Dr. Reddy’s Laboratories 0.80% Healthcare
37. Bajaj Auto (BAJAJ-AUTO) 0.78% Automobile
38. Adani Ports and SEZ (ADANIPORTS)0.75% Services
39. SBI Life Insurance Co. (SBILIFE)0.73% Financial Services
40. Cipla (CIPLA) 0.72% Healthcare
41. Wipro (WIPRO) 0.66% Information Technology
42. Britannia Industries 0.65% FMCG
43. Tata Consumer Products 0.64% FMCG
44. Apollo Hospitals Enterprise 0.63% Healthcare
45. Eicher Motors 0.60% Automobile
46. LTIMindtree Ltd (LTIM) 0.58% Information Technology
47. Hero MotoCorp (HEROMOTOCO) 0.56% Automobile
48. Divi’s Laboratories (DIVISLAB) 0.55% Healthcare
49. Bharat Petroleum Corp. (BPCL) 0.47% Oil & Gas
50. UPL (UPL) 0.33% Chemicals

So next time when you hear the news “Nifty is up”, it means the stocks in the nifty 50 is performing well. So you have to understand the Nifty index to know how the market is performing and economy is reacting to the world market.

The word “Nifty 50” make you rich by giving option to invest in top 50 companies.

1. Exchange Traded Fund(Exchange traded fund) : Start with 25 rupees and do real time trading in stock exchange

You can start investing in Nifty 50 index with 25 rupees. It would take half day to start your demat account with discount broker Groww, Zerodha, Angelone, Upstox. You can contact their customer care and open demat account within a day. After open you account, you can invest in Nifty ETF in the stock exchange. The Aditya BSL Nifty 50 ETF(BSLNIFTY ETF) is availble for 25 rupees and you can start investing in Nifty 50. The list of available index ETFs are AXISNIFTY(238.40), LICCNETFN50(238.40), SETFNIF50(230) and BSLNIFTY (25.65).

You can start with 25 rupees and traded in stock exchange

Do you know there are more than 10,000 customer support representative available in discount broker to begin invest journey.

2. Systemetic investment with mutual funds:

Index mutual funds invests in index ETF. But it gives another option to invest regularly on the mutual fund. SIP stands for Systematic Investment Plan. It’s a way to invest in mutual funds by investing a fixed amount at regular intervals, typically on a monthly basis. SIPs are one of the most popular ways to invest in mutual funds. You can schedule to invest monthly from 100 rupees to mutual fund and that mutual fund would invest in ETF.

The popular UTI Nifty 50 Index Fund, ICICI Prudential Nifty 50 Index Fund, Nippon India Index Nifty 50.

Index mutual funds provide you the option to invest in ETF with SIP option.

You can start your mutual funds with low cost platforms such as Zerodha mutual funds, Groww, Kuvera and 5Paisa.

3. Invest directly in the Nifty 50 stocks :

Few investors do not want to invest in PSU stocks. Public Sector Undertakings (PSUs) are government-owned enterprises in India. Because in PSU stocks government decides policies and has control over the company. Nifty 50 index has few PSU stocks SBI, NTPC, Coal India and ONGC. Those who do not want to invest in PSUs would invest directly on selected stocks directly in the Nifty 50.

Strategies to grow rich :

1. Patience is important in investment. Real power of compounding can be experience with time. Continue your investment for long term.
2. Do not try to do trading in stock market. Investment to grow wealth in long time. Do not try to trade by buying/selling in short term. You can’t become rich in trading until you reach mastery.
3. Start with ETF and mutual funds at first. Do not start direct stocks investment immediately. Index funds gives 12% in long term.
4. Do not search for investment advice online. Most of the advices are manipulated or trap for retail investors. Professional investors do not care about these advices as they are clear about list of stocks to invest and when to buy stock with right price.
5. Do not hurry or tense in the market. Each of your unplanned action in the market will make you lose the money in case you are investing in direct stocks.
6. Do not think only Gold, real estate and insurance as investment. These are 50 years old investment strategies. Invest in stock market and mutual funds for wealth creation.
7. Identify 20 stocks in the market with right value, right valuation with complete analysis. You can start investing in these stocks once you get right opportunity to invest in.

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