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Nifty 50 ETFs

A Nifty 50 ETF is an exchange-traded fund that aims to replicate the Nifty 50 index by holding the same stocks, in the same weights, as the index itself. When you buy units of an ETF Nifty 50 fund, your money is spread across the fifty large-cap companies in the benchmark, giving you broad market exposure with a single product.

These ETFs are listed and traded on stock exchanges just like individual shares. As a result, the Nifty 50 ETF share price moves throughout the trading day in line with changes in the underlying index and demand–supply in the market. Over time, this structure has made Nifty 50 ETFS or ETF options a preferred low-cost core holding for many long-term investors.

At a basic level, a Nifty 50 ETF pools money from many investors and uses that pool to buy the basket of stocks that make up the index. The fund manager’s job is not to select stocks actively, but to keep the portfolio as close as possible to the index in terms of composition and weights.

  • Underlying index: The ETF tracks the Nifty 50 index, which represents 50 of the largest and most liquid companies listed on the NSE.

  • Units and pricing: The portfolio is split into tradable units; these units quote on the exchange, and prices move in real time during market hours.

  • Costs: Investors bear an expense ratio that is usually lower than most actively managed equity funds because management is rules-based.

The dynamic table below can show the best Nifty 50 ETFs in India, ranked by the latest 1‑year return and current Nifty 50 ETF share price data from leading ETF issuers, based on real-time market information.

Returns from a Nifty 50 ETF primarily come from two sources: price movement in the underlying index and dividends from the companies in that index. The ETF’s actual performance will usually be close to, but slightly lower than, the index due to costs and minor tracking differences.

The Nifty 50 ETF returns are driven by -

  • Dividends

  • Expense ratio

  • Tracking error

Nifty 50 ETFs can serve as a core building block for investors who want broad, large‑cap exposure without selecting individual stocks. They suit investors who are comfortable with a demat and trading account, and who prefer market-linked pricing throughout the day.

The main attraction of Nifty 50 ETFs is that they provide instant diversification across leading companies, along with transparent, rules-based management. For many investors, this combination of simplicity, cost efficiency, and liquidity is difficult to replicate with individual stock picking.

While Nifty 50 ETFs reduce stock-specific risk through diversification, they still carry market risk because they move with the index. Market downturns will affect Nifty 50 ETFs just as they affect the underlying index. Some ETFs may have wider bid-ask spreads or lower trading volumes, increasing the effective cost of entering or exiting positions.

Investing in Nifty 50 ETFs through Kotak Neo is similar to placing any equity order, but you search for the ETF by its name or symbol instead of a stock. Once your demat and trading accounts are active, you can use the Kotak Neo platform to place buy or sell orders in real time and track your holdings along with the rest of your portfolio.

  • Open and activate your demat and trading account with Kotak Neo if you have not already done so.

  • Log in to the Kotak Neo app or web platform using your registered credentials.

  • Ensure that sufficient funds are available in your linked trading account or bank account.

  • In the search bar, type the name or symbol of the chosen Nifty 50 ETF from your Nifty 50 ETF list and open its details page.

  • Check key information such as current market price, recent volume, and basic scheme details before you proceed.

  • Choose the order type (market or limit), enter the number of units you wish to buy, and confirm the order.

  • After execution, the ETF units will appear in your demat holdings, and you can track or sell them later through the same interface.

Open Demat Account

 

Disclaimer

Investments in securities market are subject to market risks, read all the related documents carefully before investing. Brokerage will not exceed SEBI prescribed limit. The securities are quoted as an example and not as a recommendation. SEBI Registration No-INZ000200137 Member Id NSE-08081; BSE-673; MSE-1024, MCX-56285, NCDEX-1262. Read full disclaimer here

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