What are NIFTY & SENSEX and how they can grow your WEALTH-Find out here!

Well, again a very welcome to all.

We have discussed a lot about the importance of financial planning in our lives and we can be assured of our financial freedom by investing in stocks or equity markets.

Today, we will discuss about NIFTY & SENSEX which makes India equity or stock market.

Broadly, Indian stock market has two exchanges -NSE and BSE both have their head offices at Mumbai. By exchange, we mean a platform and a marketplace where equity shares are traded ( i.e. bought or sold). For example, if we need to buy a packet of sugar, we will go to a retail shop or a supermarket.

Similarly, the markets where stocks are bought or sold ars called exchanges. So, here, anyone having a DMAT account can  sell and buy stocks.

NSE stands for National Stock Exchange

BSE stands for Bombay Stock Exchange

Now, NIFTY is a group of top 50 companies of India and benchmark index of NSE. Similarly, SENSEX is a group of top 30 companies of India and benchmark index of BSE.

WHY NIFTY IS A GREAT IDEA FOR INVESTMENT ?

Since NIFTY & SENSEX represents top companies of India, it really makes sense to invest directly in them because historically, NIFTY has been rising as our economy is growing. We all know that India is growing and we all have experienced growth in terms of increasing mobile handsets, growing number of companies in the online spaces selling millions of products etc. 

So, this is quite evident we are living a life in an age which is better than our predecessors in terms of the number of things we are using right now and this is all happening, because number of companies growing and their are making profits in the market.

This clearly indicates that top companies must be growing at faster pace which are a part of NIFTY's 50 companies. So, whenever companies grow, NIFTY grows which will always happen as we all work in our offices and contribute to growth of our economy.

Hence, investing in NIFTY for a longer horizon of time can help in achieving stellar returns more than traditional investments like FD's or insurance. 

Even, great Investor of the century Mr. warren Buffet has also quoted, that investment in Index Fund( Nifty Fund) can get you returns better than any other investments for a longer horizon of time.

So, friends, gear up and invest in Indian Economy and secure your important life goals.

RISK in NIFTY 

For a longer horizon of time, there is no risk at all. We always prefer to invest in nifty for very important life goals like child's education, retirement planning etc. as the graph of nifty is always on rise since its very beginning . Hence, investing in NIFTY for a longer horizon of time can give stellar returns i.e. approximately 15 % CAGR annually.

Don't worry on downs as this is a part of equity and don't be panic as in a long run, NIFTY has always been growing despite of 2008 recession, and other events etc.

HOW TO INVEST IN NIFTY INDEX FUND ?

Its a s simple as making an online account. Search for any mutual fund which invests in NIFTY and create your online account. Once it is done, there will be a direct deduction from your bank account which we generally called, SIP ( Systematic Investment Plan) and let your money stay there for a longer time to grow and compound and give you stellar results.

Now, several questions like below will be pouring in your mind like

• I am 30 and plan for my child's education. So what amount I shall pay today every month for his education?
• I am 35 today and want to plan my retirement. So, how much shall I pay every month today to plan my life afterwards ?
• And so on...

If you want to know about the monthly amount you need to invest for a corpus ( money) to build up, you may post a comment or directly send it to hina.gupta19@gmail.com

Thanks