Participating in the India growth story through Nifty50 ETF
As expected, India has drawn the interest of both foreign and domestic investors eager to invest in its equity markets, a trend anticipated to persist.
Flipping through news channels or the morning newspaper these days, it’s hard to miss a headline about the Indian stock markets’ stellar rise. Nifty50, the stock market index which represents the 50 largest listed businesses in India, is currently at all-time highs. The businesses that form part of the Nifty50 index represent major sectors of the Indian economy such as Banks & Financial Services, Oil, Gas and Consumable Fuels, Information Technology, Automobiles, and so on.
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As such, the components of the index broadly represent the underlying Indian economy. Also, these businesses are among the largest and leading names in their respective sectors, enjoying benefits of size and scale and resilience in nature given that they are well-established and reputed names. Since these businesses are widely tracked and well-regulated, the scope for negative surprises is relatively limited. As of September 29, 2023, the Nifty50 Index represents about 59% of the free float market capitalization of the stocks listed on the NSE.
So, if one wishes to create long-term wealth by participating in the India growth story, without taking too much risk, investing in the country’s fifty largest businesses which form part of the Nifty 50 index could be a straightforward strategy.
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