Beginners to the stock market have many questions in their mind. One thing is asked every time in all these questions that how to invest in Nifty or buy Nifty? Today in this post we will talk Nifty Bees.
So first of all know what is Nifty 50? Nifty Index (Nifty 50) is the weighted average price of the 50 largest companies in India that are listed on the NSE. If you do intraday trading then you can buy and sell Nifty through futures and options trading. But here we are talking about long term investment, so let me tell you that you cannot invest directly in Nifty. For this you can use these 2 popular methods –
- Nifty Bees (ETF)
- nifty 50 index fund
As I told you earlier, today we will talk about Nifty Bees. Nifty Bees is India’s first Stock Exchange Funds (ETFs) Which you can buy directly from your trading app. It is bought and sold just like a stock. Also, the changes taking place in Nifty have a direct effect on it as well.
That is, if there is an upward trend in Nifty, then it will also trend and if Nifty is in down then it will also fall. nifty twenty You can buy or sell during trading hours through a phone call to the broker or through an online trading app. For this you need to have a trading account. It gives you the power to react rapidly to changes in the market. Nifty seeds are held in a demat account like other portfolio holdings. Its one share (unit) is equal to 1/100 of the Nifty index. It is traded on both NSE and BSE. now let’s talk The benefits of nifty bees.
- it is economical
- this is easy
- The performance of Nifty Bees is a replica of the Nifty 50 Index.
- no human error
Now there are advantages as well as disadvantages. Let’s know what are Disadvantages of ETFs? There is no significant loss in Nifty Bees but clearly there can be many mutual funds that can outperform Nifty Bees, be it due to good judgment or luck.
Now diversification comes in the portfolio because of Nifty seeds. This is a good opportunity especially for small investors to diversify their portfolio. Here you are directly investing in Nifty 50 stocks where you have access to everything including Pharma, FMCG, IT and Banking. An investor cannot diversify his portfolio better than this.
Now how is this a good way? Let’s understand. For example, suppose you had taken Yes Bank, Jet Airways, DHFL or PC Jewellers, you would have been in trouble by now. But if you take Nifty seeds, will anything happen to your portfolio? Nothing happens. Stock can be 0 but Nifty 50 can never be 0. Simply put, it is a treasure trove for small traders.
Now the question must be coming that mutual fund may be good, it is absolutely good but you need to understand that this is a different world. Your mind is not in the mutual fund, the fund manager’s mind is there. And secondly, when you take a mutual fund, its NAV is counted as the closing price. but understand by example nifty twenty That the market fell during the day and you picked it up on the downside, you are taking the Nifty seed at a low price, but if the market corrects by the time it closes, the mutual fund will never be bought at that price. So here again Nifty Bees looks better.
Now if you are an active investor and you want to play intraday then you cannot do it in nifty future but you can play in nifty twenty. Now here comes a question: are there any dividends? Hence no dividend is available here.
Now imagine small investors like us who invest 10000, for 30 years. And if you go with 12% return, you will earn Rs 3,52,99,138.
investing in etfs Much easier than investing in stocks or mutual funds. Now finally comes a question: Should you invest in Nifty? Let me tell you that it completely depends on you because here the money is going to be yours and not anyone else’s. If you still have any question related to buying or investing in Nifty then you can understand its full story. nifty twenty In easy words on our Youtube channel and you can ask your question in the comment box.
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