How To Invest In Nifty – Trading Tips And Strategy

Today’s article is going to be very informative for all of you because in today’s article we will tell you about Nifty50 as we have already told you about nifty but today We will tell you about Nifty50, what is Nifty50 and how it works, so if you also want to get this information, then stay on this article till the end.

What Is Nifty50?

If we talk about Nifty50 then it is an index which includes top 50 big companies of India and it is leader in its respective sectors‌ therefore, for your information, let us tell you that only the biggest companies in India become part of this intake and those are reputed companies.If you watch the news, you must have seen that the change in Nifty50 often comes from the change in the share price of the 50 underlying companies that make up the index.

How stocks are selected to be part of Nifty50?

Now if we talk about how to choose a stock to be a part of Nifty50, it often comes to everyone’s mind whether to trade or be a part of Nifty50, then it is not that easy, let’s know Some important things related to this.

Universe:- First of all, the company must be listed on the National Stock Exchange to be a part of the Nifty50‌ And the staff of the company should be available for trading in NSI futures and options agreement. If the company is not listed then it cannot be a part of nifty50.

Basic Structure:- Only 50 companies are selected from the universe list of NSI on the basis of free float market capitalization. For your information, let us tell you that the free float market cap is very easily calculated by multiplying the share price by the number of shares easily available in the market For example, suppose that if 100000 shares of the company are readily available in the market and the price per share is ₹ 30, then the market capitalization of the company is ₹ 3000000.

Liquidity:- The most important thing to be included in Nifty Fifty is that another important factor for the stock is its liquidity. This means that it should be easy to buy and sell the stocks which are part of Nifty 50.

Rebalancing and Restructuring:- The 50 companies in the Nifty50 index are not fixed rather it is rebalanced every year in June and December meaning on annual basis and Nifty50 removes those stocks which fell in market cap or if the shares are undergoing suspension or delisting and are replaced by scrips filling up the delisted shares which would have increased in market cap.

How to invest in Nifty50?

As we have already told you that Nifty50 consists of reputed and 50 big companies of India. There are 2 ways to invest in Nifty50. To invest in Nifty50 buy direct stop in his daughter’s respect percentage and another option is to invest in index mutual funds tracking Nifty50 these index mutual funds replicate Nifty50 i.e. have a portfolio like the index For your information, let us tell you that Nifty50 fund will have 50 employees in the same ratio as Nifty50. All you have to do is invest whatever amount you want in these funds.

So now you must have known what is Nifty50, how to become a part of its stock or how to invest in Nifty50. If you also want to invest in Nifty50, then first read our given information carefully after this you take a decision because there is a risk in every trading which you have to bear.


We hope that this article of ours will prove to be very informative for you, if you like the information given by our today’s article, then definitely share it further and comment in the comment box below.

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