How to Invest In Nifty Bees & Index Funds

How to invest in Nifty? ,

Beginners who are in the stock market have many questions such as –

One thing that is asked every time in all these questions is how to invest in Nifty or how to buy Nifty?

So today we are going to clear your Nifty related Doubts through this post so that you can understand the investment better.

How to invest in Nifty?

Nifty Index (Nifty 50) is the Weighted Average Value of the 50 largest companies of India which are listed on NSE (National Stock Exchange).

This is a bigger stock index than the Sensex (Top 30) in the stock market, which shows the average price of the top fifty companies like a benchmark.

What is required to buy Nifty?

To buy this you must have the following things –

1. A Demat Account – Which you can open very easily in Zerodha.

See this post for more details –

2. Secondly, if you are using Zerodha its trading app –

Now the question comes that how to buy Nifty?

If you do Intraday Trading then you can buy and sell Nifty through Future and Option Trading.

But here we are talking about Long Term Investment, so let me tell you that you cannot invest in Direct Nifty.

For this you can use these 2 popular methods –

  • Nifty Bees (ETF)
  • Nifty 50 Index Fund

What is Nifty Bees?

Nifty Bees is India’s first Stock Exchange Fund (ETF) which you can buy directly from your trading app.

It is bought and sold just like a share, as well as the changes in Nifty have a direct effect on it too.

That is, if there is an Up trend in Nifty then it will also trend and if Nifty is in Down then it will also fall.

What is Index Fund?

Index funds are exactly like Mutual Funds. But 3 things are different in this –

  • In this there is no expert team managing funds like mutual funds, the money you put is invested in 50 companies of direct index on the basis of weighted ratio.
  • You cannot buy Nifty 50 Index Fund directly from the stock exchange like Nifty Bees. And
  • Its Buy and Sell price is fixed by NAV for every day.

How to buy Nifty Bees?
To buy Nifty Bees, follow the process given below –

1. First of all login to Kite App –

2. Go to Watchlist and enter NiftyBees –

3. Now click on + (Add) and add it to the list.

4. Coming back to your Watchlist, click on Nifty Bees. After which you will see a view like this –

5. Here you can see the orders of those who buy (Bid) in the left, while on the right side you will get the orders of those who sell (Offer).

6. Now click on Buy, then enter Quantity and Price and select CNC –

(If you want, you can also place the order on the market, in which you will not need to enter the price)

7. Finally Swipe to Buy, which will bring Nifty Bees to your Holding section.

8. In this way you can buy Nifty.

How to Buy Nifty Index Funds?

1. First of all login –

(Password and Pin are same as used in Kite App)

2. Now go to Profile section and click on Manage –

3. Enter the amount you want to add in fund’s and add money by clicking on Add Now –

(For this you can use UPI, Google Pay and Net Banking.)

4. Then go to the home page and type in the search box – Nifty 50 Index Fund

5. After that you select the fund for yourself from the given list.

6. Click on the fund to buy and after that you will have an interface like this –

(In this you can see every detail of that fund.)

7. Now click on Buy.

8. Enter your amount – which should be at least more than 5 thousand –

9. Finally tick the checkbox of Conditional. By which you will see the NAV price of the fund at which you can buy the fund.

(If you want, you can also set your price and when the NAV will be equal to your price, then index funds will be bought)

10. Finally click on Buy and after a day the funds will start appearing in your Portfolio section.

Should I invest in Nifty?

Let me tell you that it is completely up to you because here the money is going to be yours and not anyone else’s.

But it can be easily understood –

India is a progressive country and Nifty 50 Companies reflects the economic condition of the country. Now in such a situation, when you are investing money in Nifty, it means that you are investing money in top 50 companies of India which are –

  • Creating the most value.
  • Who is the leader of his sector. And
  • Which are very difficult to beat.

So the more you invest, the more those companies improve their business, so that they can get better returns.

Yes, it is possible that in the short term you may not see the growth that you want, but in the long term the results are definitely available.

Nifty Annual Return –

You can see in this table of Nifty Historical Returns how much return Nifty gave from 1996 to 2020 –

Year Return
1996 -1.0%
1997 20.1%
1998 -18.1%
1999 67.4%
2000 -14.65%
2001 -16.18%
2002 3.25%
2003 71.90%
2004 10.68%
2005 36.34%
2006 39.83%
2007 54.77%
2008 -51.79%
2009 75.76%
2010 17.95%
2011 -24.62%
2012 27.70%
2013 6.76%
2014 31.39%
2015 -4.06%
2016 3.01%
2017 28.65%
2018 3.15%
2019 12.02%
2020 14.17%


Nifty Bees & Index Funds: Today we have taught in this post –

  • How to invest in Nifty?
  • How to invest money in Nifty Index? And
  • Should we invest in Nifty?

If you still have any question related to buying or investing in Nifty, then you can ask in the comment box.

[Note:- The information given in this post is given for educational purposes only. Therefore the investment made by you is entirely your responsibility.]

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