Choosing index fund

I’m currently investing in HDFC BSE Sensex fund for long term. But everyone talks about nifty index fund. Should I withdraw my money from sensex and invest in nifty index fund??

My personal view and not an expert

You should not. Download the constituents of both sensex and nifty. The difference is minuscule. There are 20 additional stocks but weightage is very small. So it does not really matter. Yes every news reporter, analyst etc will talk of the nifty 50 as it is the most popular index. But from an investor perspective it does not make a difference.

If u truly want to be part of nifty, keep the sensex index fund which u have as is and start a new one for nifty. If u truly wish. If u sell the existing fund u may incur stcg or ltcg which is a sheer waste for no additional gain.

However if ur existing sensex index fund is at a loss and if u have capital gain you could do tax harvesting, again, only if u are filing returns. To me it just does not matter.

Disc. I am invested in nifty 50. In fact after the recent adani route, retail investors are indirectly invested in adani group as they are part of nifty 50 and nifty next 50. Sensex index is without any adani group stocks. @viswaram advised me to look at sensex etf as well as these comprise 30 best corporates of india


Hi, i personally felt sensex is better than nifty. Not much differences. stay invested in sensex itself

1 Like

can you elaborate on the real reason why you wish to invest in nifty index fund?

did you compare hdfc sensex vs hdfc nifty index and see any noticeable variance??

I do believe too that Sensex index funds are better than nifty index funds since Sensex stays a bit more focused and in my personal Pov 50 stocks is bit too much and a bit too diverse I’d rather go for 30 then 50.

You may look for nifty 50 value 20 index, top 20 company only

1 Like