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What is the Difference Between Nifty 50 and Nifty 50 TRI?

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As a beginner, you must have received the advice to invest in Nifty 50 since it helps you put money in the top 50 companies in the country. However, the landscape of investing has evolved, and the Nifty 50 is no longer the only game in town. Investors are now increasingly turning their attention towards Nifty 50 TRI to put their money in.

If you’re feeling puzzled by the Nifty 50 vs Nifty 50 TRI debate, you’re in the right place. Read on as we discuss various aspects of these terms and help you the better choice in Nifty 50 vs Nifty 50 TRI. 

What is Nifty 50 TRI?

As you might already know, Nifty 50 is used as an index to determine market movement. However, this is limited to only price movement. The Nifty 50 TRI, or Total Return Index, considers all aspects of stocks that can bring returns, including price and dividends.

Suppose you are planning to invest in ABC company, you would want to look at the return potential. Now, Nifty 50 TRI gives you figures including the returns in price and dividends. 

Nifty 50 TRI has been giving interesting insights since its inception. For instance- Based on Nifty 50 TRI insights- If an investor has put money in Nifty 50, at any time after June 30, 1999, and stayed committed to it for 7 years, the average return would have been around more than 10% at least 83% of the time.

Key Features of Nifty 50 TRI

To understand Nifty 50 TRI better, let’s take a look at the key features: 

  • Composite List of Promising Stocks

Nifty 50 TRI provides a composite list of the top 50 companies’ stocks that are worth investing in. As an index, Nifty 50 TRI makes investment easier even for beginners. 

  • Provides a Comprehensive View

Nifty 50 TRI has gained popularity in the Indian stock market as it allows for a comprehensive view of the market movement. In addition to reflecting the returns in price, Nifty 50 TRI includes dividends in its data. 

  • Ensures Informed Benchmarking

In addition to providing a comprehensive view, Nifty 50 TRI helps investors compare the performance of their investment portfolio that tracks Nifty 50 to TRI, helping them assess their investment strategies better. 

  • Methodology

Nifty 50 TRI is based on a free-float market capitalisation methodology. This is to say that the 50 companies included in Nifty 50 TRI are the largest in terms of their free-float market capitalisation. 

How Nifty 50 TRI Differs from Nifty 50

Now that you have a fundamental understanding, it’s time to look at the differences to come to a final decision for Nifty 50 vs Nifty 50 TRI: 

  • Meaning and Scope

Nifty 50 is a stock market index representing the stock of top 50 companies based on their stock prices whereas Nifty 50 TRI is a stock market index comprising of top 50 companies' stock based on their stock prices and dividends

  • Market Movements through a Comprehensive Lens

The biggest difference between Nifty 50 and Nifty 50 TRI is that the former is linked strictly to price indices and the latter takes into account price as well as dividends. This helps investors make better-informed decisions as many companies in Nifty 50 offer dividends, as well. 

  • Assessing Mutual Funds and Equity

Nifty 50 is no longer the benchmark for mutual funds or equity. Mutual funds and equities are now benchmarked against Nifty 50 TRI. 

Conclusion

Since the introduction, Nifty 50 and Nifty 50 TRI have established a strong foot in the market enabling investors access to top stocks in the Indian stock market without having to constantly gauge the market. Nifty 50 TRI has time and again proved to be a more reliable index because of its comprehensive approach to viewing the market.

To invest in Nifty 50 TRI, you can open a trading account with a credible portal like Bajaj Trading for a seamless experience, fast transactions and updates on Nifty 50 future price. 

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

For All Disclaimers Click Here: https://bit.ly/3Tcsfuc

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Frequently Asked Questions

What does Nifty 50 tri mean?

Answer Field

Nifty 50 TRI or Total Index Return is an investment index that includes the top 50 companies’ stocks based on their price indices and dividends offered. It has helped investors gain a better picture of the stock market. 

What is the difference between the Nifty 50 and Nifty 50 total return index?

Answer Field

Nifty 50 is a stock market index representing the weighted average of the top 50 companies’ stocks based on their price indices whereas Nifty 50 TRI in addition to providing price indices also includes dividends in creating a weighted average of the top 50 companies’ stocks in the Indian stock market. 

What does Nifty Auto Tri mean?

Answer Field

Nifty Auto TRI is a stock market index representing the stocks of the top 50 automobile companies in India. The weighted average is based on returns offered through price and dividends.

How many types of Nifty 50 are there?

Answer Field

The Nifty 50  covers 13 sectors of the Indian market including; Nifty Auto, Nifty FMCG, Nifty Bank, Nifty Healthcare, Nifty Financial Services, Nifty Financial Services 25/50, Nifty IT, Nifty Media.

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