To buy Nifty 50 in Zerodha, you cannot directly buy the index itself since it is just a benchmark index. Instead, you have the following main options:
- Buy Nifty 50 ETFs (Exchange Traded Funds): These ETFs track the Nifty 50 index by holding the same 50 stocks in the same proportion. You can buy Nifty ETFs like "Nifty BeES" or other Nifty 50 ETFs available on Zerodha just like buying any stock. Search for "Nifty 50 ETF" or "Nifty BeES" in the Zerodha Kite app or website, add it to your watchlist, and place a buy order
- Buy Nifty Futures or Options: If you want to trade derivatives based on the Nifty 50 index, you can buy Nifty futures or options contracts on Zerodha. This requires activating the F&O (Futures & Options) segment in your Zerodha account. Futures and options allow you to speculate or hedge based on the index movement but involve leverage and higher risk
- Invest in Nifty 50 Index Mutual Funds via Zerodha Coin: Zerodha also offers mutual funds that track the Nifty 50 index, such as the Navi Nifty 50 Index Fund, which you can buy through Zerodha Coin platform for a more passive investment approach
Steps to Buy Nifty 50 ETF on Zerodha Kite
- Log in to Zerodha Kite app or website.
- Use the search bar to type "Nifty 50 ETF" or the specific ETF name like "Nifty BeES."
- Add the ETF to your watchlist.
- Click on the ETF and place a buy order by specifying quantity and price.
- Confirm the order and it will be executed like a regular stock trade.
This way, you get exposure to the Nifty 50 index without buying the index directly
Summary
Method| Description| Platform/Segment Needed
---|---|---
Nifty 50 ETF| Buy ETF units tracking Nifty 50 stocks| Zerodha Kite (Equity)
Nifty Futures/Options| Trade derivatives based on Nifty 50 index| Zerodha Kite
(F&O segment)
Nifty 50 Index Mutual Fund| Invest in index mutual funds tracking Nifty 50|
Zerodha Coin
Choose ETFs or mutual funds for long-term investment and futures/options for trading or hedging purposes
