Nifty50 Companies – List of Stocks in NIFTY50 in year 2020

Full form of Nifty : NIFTY (“National Stock Exchange Fifty”)

NSE and BSE are two big exchanges in Indian stock market.

Nifty 50 is the flagship index of NSE (National Stock Exchange). The index is set of Top bluechip companies in its portfolio, the largest and most liquid Indian securities which are 50 out of approx 1600 stocks traded on NSE.

Nifty 50 covers approx. 65% of float adjusted market capitalization of NSE.

Since April 1996, NSE Indices Ltd manages Nifty50 Index.

List & weightage of Stocks in Nifty50 in 2020

NIFTY50 Index Funds

NIFTY 50 Funds basically invest in these Nifty 50 Companies in Nifty weightage to get the benefit of appreciation in these Top quality stocks, they offers:

Diversification

As the index consists of stocks from 17 different sectors it is worth to invest in Nifty 50 traded fund. It reduces the dependency on a particular sector. So diversification problem is solved in this way and an investors will be investing in the economy on the whole.

Low Cost

The index fund mirrors the returns that the index generates, so it reduces the cost of fund management. The returns over any period of time will be almost similar to Nifty. The role of the fund manager in the selection of stocks, industries etc. is non-existing.

Reduced Fund Manager Role

Some fund manager will be able to call the shots right while many of them could take a wrong call as well. Index funds are for those who do not wish to rely on the fund manager’s instincts and research rather ready to settle with market returns.