{"id":14281,"date":"2025-01-14T07:03:48","date_gmt":"2025-01-14T07:03:48","guid":{"rendered":"https:\/\/lxme.in\/?p=14281"},"modified":"2025-08-01T11:50:05","modified_gmt":"2025-08-01T11:50:05","slug":"difference-between-nifty-and-sensex","status":"publish","type":"post","link":"https:\/\/lxme.in\/v1\/difference-between-nifty-and-sensex\/","title":{"rendered":"What is Nifty and Sensex?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_75 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/lxme.in\/v1\/difference-between-nifty-and-sensex\/#What_is_Nifty\" >What is Nifty?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/lxme.in\/v1\/difference-between-nifty-and-sensex\/#What_is_Sensex\" >What is Sensex?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/lxme.in\/v1\/difference-between-nifty-and-sensex\/#How_Indian_Equity_Markets_Have_Grown_as_Compared_to_FDs_Over_The_Years\" >How Indian Equity Markets Have Grown as Compared to FDs Over The Years?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/lxme.in\/v1\/difference-between-nifty-and-sensex\/#Why_Should_Women_Know_About_Nifty_and_Sensex\" >Why Should Women Know About Nifty and Sensex?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/lxme.in\/v1\/difference-between-nifty-and-sensex\/#How_to_Invest_in_Nifty_50_and_Sensex\" >How to Invest in Nifty 50 and Sensex?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/lxme.in\/v1\/difference-between-nifty-and-sensex\/#How_Actively_Managed_Mutual_Funds_Can_Be_a_Smart_Choice_For_a_Women_Investor\" >How Actively Managed Mutual Funds Can Be a Smart Choice For a Women Investor?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/lxme.in\/v1\/difference-between-nifty-and-sensex\/#FAQs\" >FAQs<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/lxme.in\/v1\/difference-between-nifty-and-sensex\/#Can_beginners_invest_directly_in_Nifty_or_Sensex\" >Can beginners invest directly in Nifty or Sensex?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/lxme.in\/v1\/difference-between-nifty-and-sensex\/#Why_are_Nifty_and_Sensex_considered_economic_indicators\" >Why are Nifty and Sensex considered economic indicators?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n\n<p>Ladies, have you ever felt lost when conversations about the share market come up? Terms like Nifty 50 and Sensex might sound intimidating, but they\u2019re not as complex as they seem. Understanding these concepts is like unlocking a new superpower for managing your finances &amp; having conversations with your friends &amp; family. After all, we women are amazing multitaskers, and learning about investments is a life skill every woman should know!<\/p>\n\n\n\n<p>Let\u2019s decode these terms and understand the meaning of Nifty &amp; Sensex, the difference between Sensex and Nifty, and the basic understanding of the same.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/lxme.onelink.me\/95JV\/portfoliodetail601\" target=\"_blank\" rel=\"noopener\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"108\" src=\"https:\/\/lxme.in\/wp-content\/uploads\/2024\/10\/Web-Blog-Banner-03-3-1024x108.jpg\" alt=\"\" class=\"wp-image-11878\" srcset=\"https:\/\/lxme.in\/v1\/wp-content\/uploads\/2024\/10\/Web-Blog-Banner-03-3-1024x108.jpg 1024w, https:\/\/lxme.in\/v1\/wp-content\/uploads\/2024\/10\/Web-Blog-Banner-03-3-300x32.jpg 300w, https:\/\/lxme.in\/v1\/wp-content\/uploads\/2024\/10\/Web-Blog-Banner-03-3-150x16.jpg 150w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_Nifty\"><\/span><strong>What is Nifty?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Nifty 50 is a stock market index that represents the top 50 companies from diverse sectors listed on the NSE (National Stock Exchange). This index was launched in 1996. On NSE there are 2,379 companies listed out of which the top 50 companies are listed on Nifty 50. Think of it as a basket filled with India\u2019s leading companies. These companies are chosen based on their performance and size, and together they give us a snapshot of how the stock market is doing. The stocks are chosen based on a number of factors, including market capitalization, liquidity, and sector representation.<\/p>\n\n\n\n<figure class=\"wp-block-image is-resized\"><img decoding=\"async\" src=\"https:\/\/lh7-rt.googleusercontent.com\/docsz\/AD_4nXc2-E3uBF9WUmLpqWEWQBnbQOTjd3SC2msW1gHbNVbsEqQs_FvisbIFTFROiGNQ72mqmivKZZQhOCLd0Mr6kS8b3vOKfqn502OW3LZJMvjg9kxXkLFekw6HFsa4jygJjaX0sd8iew?key=3gaBMBWlj2Dapsj6oISAPGpH\" alt=\"Nifty 50 Trends\" style=\"width:842px;height:520px\"\/><\/figure>\n\n\n\n<p>The 29-year CAGR (1996-2024) of Nifty 50 is 11.93%, while the absolute return is 2529% as of 30th December 2024.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_Sensex\"><\/span><strong>What is Sensex?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Sensex, on the other hand, represents the top 30 companies listed on the BSE (Bombay Stock Exchange) from diverse sectors. This index was launched in 1986. It\u2019s like a smaller basket of well-performing companies. On BSE there are 5,505 companies listed out of which the top 30 companies are listed on Sensex.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image is-resized\"><img decoding=\"async\" src=\"https:\/\/lh7-rt.googleusercontent.com\/docsz\/AD_4nXdJfpgpPOXNiSqfI3a4sCoL59_qLZFelsPRJ-11dqpeT0R2T4wVgRDqR1DWuXZ7n4vt-URoosZIBC6FrduHIUdpV6PtU7nMcqxtfNMYC2Q7aVeYW-vJupaKLfOCchG8BfV9dK0jZw?key=3gaBMBWlj2Dapsj6oISAPGpH\" alt=\"Sensex Trends\n\" style=\"width:838px;height:518px\"\/><\/figure>\n\n\n\n<p>The 39-year CAGR (1986-2024) of Sensex is 13.69%, while the absolute return is 14820% as of 30th December 2024.<\/p>\n\n\n\n<p>Both Nifty and Sensex show the health of the equity market. These are 2 prominent Indices of the equity market.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Indian_Equity_Markets_Have_Grown_as_Compared_to_FDs_Over_The_Years\"><\/span><strong>How Indian Equity Markets Have Grown as Compared to FDs Over The Years?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Equity markets go through ups and downs which is known as market volatility but as you can see in the below chart it has delivered higher returns even with volatility. But on the other hand FDs fixed interest is not even able to beat inflation. Volatility is the nature of the market so, equity markets expect patience and perseverance from investors if they want to earn inflation-beating returns and create wealth.<\/p>\n\n\n\n<p>The below chart depicts the return comparison year on year basis between FD, Nifty 50 &amp; Sensex:<\/p>\n\n\n\n<p>The 11-year average interest rate for FD is 6.79%, and for Nifty 50 &amp; Sensex 11 years average rate of return is 13.30% and 13.11% respectively.<\/p>\n\n\n\n<figure class=\"wp-block-image is-resized\"><img decoding=\"async\" src=\"https:\/\/lh7-rt.googleusercontent.com\/docsz\/AD_4nXcHu9VZnWR5NydBHsl6Cpjg-SUM0lpFFh-3MjF0dfuPItNVDCJzmv5Ml4yxdQd1d5Xq8WGMscdMizU8SO93W7snru1MGHp6BgrX1x8gvsMn7cQT4immlihmpuTqE4NDda3xXWhnhQ?key=3gaBMBWlj2Dapsj6oISAPGpH\" alt=\"FD,Nifty 50 and Sensex Returns\" style=\"width:838px;height:518px\"\/><\/figure>\n\n\n\n<p>As you can see in the above graph Nifty 50 &amp; Sensex almost moved in the same direction, however, FD was not able to beat the inflation rate which is the biggest hurdle to creating wealth. So, if you wish to build wealth then you should diversify your portfolio and should have an equity component in your investment portfolio.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_Should_Women_Know_About_Nifty_and_Sensex\"><\/span><strong>Why Should Women Know About Nifty and Sensex?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Understanding Nifty and Sensex is essential because they act as benchmarks for the Indian equity market. And if you are investing in equity then these 2 indices give you an overall view of how equity markets are performing.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_Invest_in_Nifty_50_and_Sensex\"><\/span><strong>How to Invest in Nifty 50 and Sensex?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>You cannot invest directly in Nifty 50 or Sensex, but you can invest through, ETFs i.e. Exchanged Traded Funds, &amp; Index Funds which are a type of investment that tracks a particular market index. It aims to replicate the performance of the index as much as possible. ETFs are traded on the stock exchange and can be bought or sold at market prices, so, to invest in ETFs you need a Demat account. And If you want to invest in index funds then you don\u2019t need a Demat account.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Actively_Managed_Mutual_Funds_Can_Be_a_Smart_Choice_For_a_Women_Investor\"><\/span><strong>How Actively Managed Mutual Funds Can Be a Smart Choice For a Women Investor?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Actively managed equity mutual funds are designed to beat the market by carefully selecting stocks\/shares that can perform better than the index. While ETFs &amp; index funds simply mirror the index, actively managed mutual funds aim to deliver higher returns and generate alpha (Extra returns which you get over market returns is known as alpha). For women juggling multiple roles, mutual funds are a great way to let your money work smarter while getting better returns &amp; growing your money.<\/p>\n\n\n\n<p>You can check out the Lxme app &#8211; <a href=\"https:\/\/lxme.in\/\">investment for women<\/a> which offers<a href=\"https:\/\/lxme.onelink.me\/95JV\/mymoneytab45\" target=\"_blank\" rel=\"noopener\"> expert-curated equity mutual funds<\/a> that are well-researched and curated by experts.<\/p>\n\n\n\n<p>Lastly, Nifty and Sensex aren\u2019t as overwhelming as they sound. They\u2019re indices to help us understand the stock market better. As you have understood Sensex and Nifty meaning which are 2 prominent indices of the Indian equity market that show the overall equity market performance, now it\u2019s your time to invest in equity mutual funds so, that you can grow wealth over a period of time.<\/p>\n\n\n\n<p>Remember, financial independence is not just about earning money; it\u2019s about making your money work for you. So, why wait? Start your journey today and take charge of your financial future. Because when women invest, the world prospers!<\/p>\n\n\n\n<p>*Mutual funds are subject to market risks, read all scheme-related documents carefully.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs\"><\/span>FAQs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1736409818412\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Can_beginners_invest_directly_in_Nifty_or_Sensex\"><\/span><strong>Can beginners invest directly in Nifty or Sensex?<\/strong><br><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Beginners can invest in Nifty 50 &amp; Sensex through ETFs or Index funds. However, Lxme offers expert-curated equity portfolios where beginners can start investing with just Rs.100 &amp; try to generate alpha over market returns. Additionally, Lxme also periodically reviews the investment portfolios.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1736409864597\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Why_are_Nifty_and_Sensex_considered_economic_indicators\"><\/span><strong>Why are Nifty and Sensex considered economic indicators?<\/strong><br><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Nifty and Sensex are considered economic indicators because they reflect the performance of the top companies in the stock market. Their movement provides insights into investor confidence, market trends, and the overall health of the economy. These 2 are prominent Indices in the Indian equity market.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n<script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@type\": \"FAQPage\",\n  \"mainEntity\": [{\n    \"@type\": \"Question\",\n    \"name\": \"Can beginners invest directly in Nifty or Sensex?\",\n    \"acceptedAnswer\": {\n      \"@type\": \"Answer\",\n      \"text\": \"Beginners can invest in Nifty 50 & Sensex through ETFs or Index funds. However, Lxme offers expert-curated equity portfolios where beginners can start investing with just Rs.100 & try to generate alpha over market returns. 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These 2 are prominent Indices in the Indian equity market.\"\n    }\n  }]\n}\n<\/script>\n\n\n\n<p>Further Read,<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/lxme.in\/what-are-hybrid-funds-and-why-is-it-perfect-for-women\/\" data-type=\"URL\" data-id=\"https:\/\/lxme.in\/what-are-hybrid-funds-and-why-is-it-perfect-for-women\/\" target=\"_blank\" rel=\"noreferrer noopener\">Why Hybrid Funds Are Smart Choice for Women Investors?<\/a>\u00a0<\/li>\n\n\n\n<li><a href=\"https:\/\/lxme.in\/what-are-contactless-credit-cards-and-how-does-it-work\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/lxme.in\/what-are-contactless-credit-cards-and-how-does-it-work\/\" rel=\"noreferrer noopener\">What are Contactless Credit Cards and How does it work?<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Ladies, have you ever felt lost when conversations about the share market come up? Terms like Nifty 50 and Sensex might sound intimidating, but they\u2019re not as complex as they seem. Understanding these concepts is like unlocking a new superpower for managing your finances &amp; having conversations with your friends &amp; family. After all, we <a href=\"https:\/\/lxme.in\/v1\/difference-between-nifty-and-sensex\/\" class=\"more-link\">&#8230;<span class=\"screen-reader-text\">  What is Nifty and Sensex?<\/span><\/a><\/p>\n","protected":false},"author":10,"featured_media":14282,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[660],"tags":[854,850,857,853,859,858],"class_list":["post-14281","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-matters","tag-meaning-of-nifty-and-sensex","tag-nifty-and-sensex","tag-sensex-and-nifty-difference","tag-sensex-and-nifty-meaning","tag-share-market-basic-knowledge","tag-what-is-the-difference-between-nifty-and-sensex"],"acf":[],"_links":{"self":[{"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/posts\/14281","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/comments?post=14281"}],"version-history":[{"count":6,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/posts\/14281\/revisions"}],"predecessor-version":[{"id":18637,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/posts\/14281\/revisions\/18637"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/media\/14282"}],"wp:attachment":[{"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/media?parent=14281"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/categories?post=14281"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/tags?post=14281"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}