Yes, you can invest in . As we know now, is a benchmark of the Indian stock market index. If is going upwards, the Indian economy is doing well and going upwards too.
You can invest in the index and earn returns from all stocks. You can do this through the Upstox website or app through:
1. Spot Trading: This is the most simplest way to invest in . Through this you can select some stocks or choose to buy some of them individually and reap benefits individually on each.
2. Derivative Trading: Derivatives are financial contracts that obtain their value from an underlying asset. These assets could be indices, stocks, currency or commodities. The involved parties decide on a future date to settle the contract. Speculation is made on the value that the underlying asset will achieve in the future, which is how a profit is attained. In index, two kinds of derivatives are available:
a. Futures: With futures, the buyer and seller both agree to buy & sell at a predetermined future date. This becomes the basis for the contract, during the period of which the stock can be sold and a profit attained if the price rises. If the price drops, you can wait for the date of settlement.
b. Options: With options, the buyer and seller both agree to buy & sell at a predetermined future date at a price they decide upon in the present. The buyer pays a premium amount and obtains the legal right to buy and sell the stock in the future. This is a right, not a compulsion.
3. Index Funds: Index fund is a type of mutual fund designed to provide you with market exposure. In the case of , a portfolio consisting of all the stocks available in equal quantities. This way, the portfolio earns returns as per the Index.