With the stock market correcting by around 12 per cent this calendar year so far, long-term investors now have an opportunity to enter equities again. If you have a 3-5 year horizon and can take moderate risk, you can accumulate on dips the units of Nippon India ETF Nifty 100.
Compared to Nifty 50 and Nifty Next 50 indices, the Nifty 100 offers a more diversified substitute for investors looking at broader market exposure. Nippon India ETF Nifty 100 offers a simple, cost-effective and liquid way to gain from the stock price movement of the top 100 companies based on full market capitalisation from the Nifty 500 universe.
Nifty 100 index for 3 reasons
Investors looking at large-cap passive products can consider Nifty-100 based products today for three reasons.
One, compared to the Nifty 50's around 65 per cent and Nifty Next 50's 15 per cent representation of the free float market capitalisation of the stocks listed on the NSE, Nifty 100, at over 75 per cent representation, offers a much better broad-based index representation of the diversified equity market in India. The across-the-board corrections now provide the opportunity to take exposure to a wider set of stocks.