Index and Indexing

“Investing is simple, not easy”

You could keep it simple by indexing.

We have all heard of the Nifty50 and Sensex. We know that when Nifty or Sensex goes up or down, the market is performing well or badly. But what are Nifty and Sensex, and what do they represent? They are indices. They represent a basket of the largest stocks in the country.

These stocks are of companies of various sectors such as financial services, technology, automotive, consumer goods, chemicals, healthcare, media, metals and more. The collective share price movement of these stocks is what we see as Nifty going up or down. These indices may even indicate, to some extent, the overall health of the economy.

If you think that the Indian economy is set to grow in the coming years, investing in an index could be a simple and easy way of participating the India’s growth.

In this very first video we discuss indices, and the ways for investors to invest in indices.

We also briefly touch upon the debate around indexing, which we will elaborate on in the next video.

Back to top