Nifty 50 is a stock market index representing 50 of the largest Indian companies on the National Stock Exchange.
Direct investment in Nifty 50 can be expensive and complicated; hence, Exchange-Traded Funds (ETFs) can be considered.
There are two main ways to invest in Nifty 50: NIFTY 50 ETF and NIFTY 50 Index Funds.
These are essentially mutual funds and easy to trade. ETFs have lower tracking errors with slightly higher returns than index funds.
The steps include opening a demat account to buy Nifty 50 ETFs and setting up a systematic investment plan (STP).
These funds replicate the Nifty 50 index and also offer SIP options. One can invest as low as Rs. 500 a month.
Compiled by Syed Muskan