Should i invest in sensex or nifty

The only difference is Sensex comprises 30 companies, and Nifty comprises 50 companies. Due to the high number of active stock marketers, high liquidity, and active buying and selling, Nifty is more significant in number than Sensex, but overall, Sensex has been performing better than Nifty.

Is Sensex better than Nifty?

Nifty 50 constitutes of the top 50 companies that are actively traded in NSE. Sensex comprises the top 30 companies actively traded in BSE. Nifty is a broader market index that covers 24 sectors. Sensex covers 13 sectors.

Where should I invest Nifty or Sensex?

You can start investing directly in the constituents of the SENSEX and the weightage they have in that particular index. This means that you can directly buy the stocks in the quantity which is equivalent to the stock's weightage. The better option to invest in SENSEX would be to invest in index mutual funds.

Should I invest in both Nifty and Sensex?

However, if you feel BSE Sensex is more concentrated, then you can use Nifty 50. If you are a long-term investor, then the return difference is marginal, and as usual past data is not an indication of future performance. Hence, in general, we can judge that you can choose either of the indices.

Is Nifty or Sensex more profitable?

Sensex and Nifty are the benchmark indices of BSE and NSE, respectively. Nifty comprising 50 stocks is a broader index than Sensex, which contains top 30 performing stocks. Hence, Sensex is more niche. So, when the market is bullish, the top companies perform better, pushing Sensex higher.