In India, more than 7000 companies listed for trading. We can buy each stock based on our investment goals. Buying a stock requires expertise and analysis of the market. To simplify and understand the market, an index is a method to track the performance of a group of stocks in a standardized way. Indexes typically measure the performance of a basket of stocks intended to replicate a certain area of the market. For example, below are top indexes in India,
If you have demat account and not sure what to stock to buy , this post for you to start your wealth accumulation.
New bunch of retail investors directly investing in the market should not commit the mistake of chasing low-grade cheap stocks. High quality large-caps will outperform in the future and investing via ETF diversify their investment and lower the risk in the market.
NSE Nifty 50 Index:
This is the index for top 50 companies in the Nifty. This index comprises 50 traded stocks from different sectors based on their capitalization. It holds IndusInd Bank, Larsen & Toubro Ltd,SBI Life Insurance, HDFC Bank, ITC ltd, SBI, Infosys, Axis Bank, ICICI Bank, HCL, TCS, Maruthi Suzuki, Cipla and Eicher Motors.
NIFTY Next 50 Index:
It represents the next group of 50 stocks after the NIFTY 50. It consists of 50 companies representing approximately 10% of the traded value of all stocks on the National Stock Exchange of India. It invests in Ambuja Cements, Avenue Supermarts, Berger Paints, Bank of Baroda, Bandhan Bank, Cholamandalam, Dabur, GAIL, Muthoot Finance, Mindtree, Nykaa and Vedanta.
NIFTY 100 Index:
The NIFTY Next 50 and the NIFTY 50 together comprise the NIFTY 100, which represents the 100 most liquid stocks traded on the National Stock Exchange of India.
NIFTY IT Index:
It holds top software companies in India Wipro, Infosys, HCL, Tech Mahindra, Mphasis, TCS, L&T and Mindtree.
NIFTY bank Index :
It holds top banks in India Kotak Mahindra Bank Ltd, HDFC Bank Ltd, IndusInd Bank Ltd, ICICI Bank Ltd, Axis Bank Ltd, AU Small Finance Bank Ltd, State Bank Of India, Bandhan Bank Ltd, Bank Of Baroda, Federal Bank Ltd, IDFC First Bank Ltd and Punjab National Bank.
Nifty Midcap and SmallCap Index :
NIFTY MIDCAP 50 => This index invests in top 50 companies in midcap.
NIFTY MIDCAP 100 => The index invests in 100 Midcap companies.
NIFTY SMALLCAP 50 => This index invest in top 250 companies in smallcap.
NIFTY SMALLCAP 100 => This index invest in top 100 companies in smallcap.
NIFTY SMALLCAP 250 => This index invest in top 250 companies in smallcap.
NIFTY MIDSMALLCAP 400 => This index invests in mid and small cap 400 companies.
NIFTY Finance Index :
It holds top bank and insurance companies in India, It holds HDFC Bank Ltd, ICICI Bank Ltd, Housing Development Finance Corporation Ltd, Kotak Mahindra Bank Ltd, State Bank Of India, Axis Bank Ltd, Bajaj Finance Ltd, Bajaj Finserv Ltd, SBI Life Insurance Co Ltd and HDFC Life Insurance Company Ltd.
NIFTY FMCG Index:
It holds top moving FMCG sector stocks such as ITC Limited, Hindustan Unilever Ltd, Nestle India Ltd, Tata Consumer Products Ltd, Britannia Industries Ltd, Godrej Consumer Products Ltd, Dabur India Ltd, Marico Ltd, United Spirits Ltd, Varun Beverages Ltd, Colgate – Palmolive (India) Limited, Procter & Gamble, United Breweries Ltd, Emami Ltd and Radico Khaitan Ltd.
NIFTY India Consumption Index:
It invests in ITC Limited, Hindustan Unilever Ltd, Bharti Airtel Ltd, Asian Paints (india) Ltd, Mahindra & Mahindra Ltd, Maruti Suzuki India Ltd, Adani Transmission Ltd, Titan Company Ltd, Nestle India Ltd , Avenue Supermarts Ltd.
NIFTY Infrastructure Index:
It invests in major infrastructure stocks,
- Reliance Industries Ltd.
- Larsen & Toubro Ltd
- Bharti Airtel Ltd.
- Power Grid Corporation of India Ltd
- National Thermal Power Corporation Ltd
- Ultratech Cement Ltd.
- Grasim Industries Limited
- Adani Ports And Special Economic Zone Ltd.
- Oil & Natural Gas Corporation Ltd.
- Apollo Hospitals Enterprises Ltd. Hospital
NIFTY Pharma Index:
It holds top pharma stocks in India,
- Sun Pharmaceutical Industries
- Cipla Ltd.
- Dr. Reddys Laboratories Ltd.
- Divis Laboratories Ltd.
- Laurus Labs Ltd.
- Lupin Ltd.
- Aurobindo Pharma Ltd.
- Torrent Pharmaceuticals Ltd.
- Alkem Laboratories Ltd.
- Biocon Ltd.
- Gland Pharma Ltd.
- Ipca Laboratories Ltd.
- Abbott India Ltd.
- Zydus Lifesciences Ltd.
- Pfizer Ltd.
- NATCO Pharma Ltd.
- Glenmark Pharmaceuticals Ltd.
- Granules India Ltd.
- Alembic Pharmaceuticals Ltd.
- Strides Pharma Science Ltd.
NIFTY PSU BANK Index:
It holds bank stocks,
- State Bank Of India
- Bank Of Baroda
- Canara Bank
- Punjab National Bank
- Union Bank Of India
- Indian Bank
- Bank Of India
- Indian Overseas Bank
- Central Bank Of India
- Bank of Maharashtra
- UCO Bank
- Punjab & Sind Bank
Daily we spend 30 rupees for tea. Why not 28 rupees for ETF investment !!!
Nearly 60% of Demat accounts is not in active state. You can do safe diversified investment with 100 rupees in the market. You can buy a ETF with 50 rupees.
How to invest in Nifty Index ETF
You can invest in Nifty index using ETF and index funds. ETF is traded like stocks in the market. You can buy at traded price and sell in the same trading account. To invest in ETF, demat account is mandatory. To invest in monthly SIP or without demat account, there is simplified option is index funds. You can invest in lumpsum or schedule SIP to invest in the index funds. ETFs have low expense ratio compare to index funds.
You can start invest in ETF with 50 rupees
Exchange-Traded Fund is a collection of stocks that trade on the stock market and is similar to a stock. ETFs can be bought and sold throughout the trading day like any stock. ETFs have lower cost of transactions and annual changes compared to index funds. ETFs are considered a safer product for risk averse and first-time investors who want market linked returns. ETFs are listed and traded on the stock exchanges like any other stock.
ETFs are broadly available in 4 categories. There are index ETF that are benchmarked to the Nifty or the Sensex. Secondly, there are gold ETFs that are indexed to the market price of gold. Thirdly, there are sectoral or thematic ETFs which are benchmarked to a portfolio of stocks in the particular industry. Lastly, there are international ETFs which invest in funds abroad; these are normally funds sponsored by their parent based in the US/Europe/Japan.
Nifty Benchmark ETFs:
It aims to track a particular market index like Sensex, Nifty 50, BSE 100, Nifty 100 etc. Index ETFs invest in a basket of stocks which replicate the Index the ETF aims to track. When investing in an Index ETF you should expect to get the index returns which your ETF is tracking, nothing more or nothing less. You can get trading price in money control ETF
Niffy 50 Index ETF:
It reflects the Nifty 50 index. you can start investment with 100 rupees in Nifty 50 as ABSL Nifty 50 traded 19.72 rupees.
- SBI Nifty 50 ETF
- Nippon India Nifty 50 Bees ETF
- ICICI Prudential Nifty 50 ETF
- Kotak Nifty 50 ETF
- HDFC Nifty 50 ETF
- Mirae Asset Nifty 50 ETF
- Aditya BSL Nifty 50 ETF
- Axis Nifty 50 ETF
- UTI Nifty 50 ETF
Aditya BSL Nifty 50 ETF trading price is 19.72 rupees.
Nifty Next 50 ETF:
It reflects the Nifty Next 50 index. you can start investment with 100 rupees in Nifty Next 50 as ICICI Prudential Nifty Next 50 ETF traded as 45 rupees in the market.
- Nippon India Junior Bees ETF
- UTI Nifty Next 50 ETF
- ICICI Prudential Nifty Next 50 ETF
- SBI Nifty Next 50 ETF
- Aditya Birla Sun Life Nifty Next 50 ETF
- Mirae Asset Nifty Next 50 ETF
ICICI Prudential Nifty Next 50 ETF traded price is 45.41. You would invest in 50 stocks with 45 rupees
Nifty 100 Index ETF:
- ICICI Prudential Nifty 100 ETF
- Nippon India Nifty 100 ETF
- LIC MF Nifty 100 ETF
Nifty Quality and Value ETF:
Quality and value ETF selects top qualify stocks among the nifty index. For example Kotak NV20 ETF invests top 20 value company in Nifty 50 Index.
- Nippon India NV20 ETF
- ICICI Prudential NV20 ETF
- Kotak NV20 ETF
- SBI Nifty 200 Quality 30 ETF
- Edelweiss Nifty 100 Quality 30 ETF
Kotak Nifty 50 Value 20 ETF invest in top 20 stocks in Nifty 50 index and traded at 95 rupees
Sector ETF:
Bank ETFs invests in a basket of banking stocks listed on the stock exchanges. A sectoral or thematic ETF is designed to replicate the performance of a particular sector. Kotak IT ETF, ICICI Prudential Nifty Auto ETF, Axis Banking ETF, SBI ETF Consumption, and Aditya BSL Nifty Healthcare ETF are few examples of such ETFs. These are different from equity as discussed above in the Equity ETF section.
Aditya Birla Bank ETF is trading at 42 rupees
- Kotak Nifty Bank ETF
- SBI Nifty Bank ETF
- ICICI Bank Nifty Bank Index ETF
- Aditya Birla Bank ETF
- SBI ETF PRIVATE BANK
- UTI Bank ETF
- Nippon ETF PSU Bank BeES
- ICICI Prudential Nifty Private Bank ETF
- HDFC Banking ETF
- MIRAE ASSET NIFTY FINANCIAL SERVICES ETF(18.75)
SBI Nifty Consumption ETF trading at 79.00 rupees as of Sep 16, 2022
- SBI Etf Consumption
- Icici Prudential Nifty FMCG ETF
- Icici Prudential Nifty India Consumption ETF
- Axis Nifty India Consumption ETF
NIPPON INDIA NIFTY PHARMA ETF trading at price of 12.50 rupees. It invests in 20 top pharma stocks in India
- Nippon India India Pharma ETF
- ICICIP Nifty Healthcare ETF
- AXIS Nifty HealthCare ETF
You can buy ICICI Nifty IT ETF with 31 rupees. It has Wipro, TCS, Infosys, L&T and 11 more Software companies
- AXIS Nifty IT ETF(300)
- SBI ETF IT(301)
- ICICI Nifty IT ETF(30.17)
- KOTAK Nifty IT ETF(29.75)
- ABSL NIFTY IT ETF(29.52)
Nippon India ETF Nifty IT is 28.73 as of Sep 16,2022. You can buy with 28.73 rupees
An ETF is a great strategy to diversify your stock portfolio. If you have demat account and confusion in selecting the stocks to invest, ETF are best way to start your investment. Search “ETF” in your trading account and start investing in ETF.
How to start trading after opening demat account:
You can start ETF investment by transfer money from your bank account to trading account. Select the respective ETF in the trading platform and select Buy option. Its all takes less than 3 min to invest in ETF with Demat and trading account.