A:

The Nifty 50 was a group of the 50 most popular large cap stocks on the New York Stock Exchange in the 1960s and 1970s. The group included Walt Disney, Coca-Cola, Dow Chemical, IBM and McDonald's. Nifty 50 stocks were widely regarded as solid buy-and-hold equities and the companies in the group were characterized by consistent earnings growth and high P/E ratios. In addition, the Nifty 50 stocks were credited with propelling the bull market of the early 1970s.

Due to their marked stability, Nifty 50 stocks were viewed as "one-decision" picks because investors were told to buy and hold them forever. In February 2008, Wall Street giant UBS devised the New Nifty 50, an expanded version of the list, which now includes international companies like Toyota, Samsung, Nokia and Swatch. The inclusion of international companies on the New Nifty 50 allows investors to take advantage of the solid returns and stability of companies in the UK, Japan and some European countries.

(For more on this topic, read Ten Tips for the Successful Long-Term Investor.)

This question was answered by Steven Merkel.

RELATED FAQS

  1. Should I invest in penny stocks or large cap stocks for my retirement portfolio?

    Determine whether to invest in penny stocks or large-cap stocks for retirement. Penny stocks are extremely speculative while ...
  2. Is it more beneficial to invest in a blue chip stock or a penny stock?

    Learn more about penny and blue-chip stocks, why it may be a bad idea to invest in penny stocks and why blue-chip stocks ...
  3. How can I calculate the forward p/e of the S&P 500?

    Learn how forward P/E is calculated for the S&P 500. Forward P/E is an important metric appropriate for changing market conditions.
  4. Should I buy and hold a cyclical stock for long-term gains?

    Discover whether cyclical stocks are a good option for long-term investors. Cyclical stocks tend to be highly leveraged to ...
RELATED TERMS
  1. Warren Buffett

    Known as "the Oracle of Omaha", Buffett is Chairman of Berkshire ...
  2. Holding Period Return/Yield

    The total return received from holding an asset or portfolio ...
  3. S&P 500 Dividend Aristocrats

    Companies that have had an increase in dividends for 25 consecutive ...
  4. Purple Chip Stock

    A term coined by portfolio manager John Schwinghamer to describe ...
  5. Blue-Chip Index

    A stock index that tracks the shares of the top-performing publicly ...
  6. Blue Chip Indicator

    A formal gauge or measure of the performance of a selected group ...

You May Also Like

Related Articles
  1. Trading Strategies

    Market Timing Tips & Rules You Should ...

  2. Chart Advisor

    Interested in Growth Stocks? See These ...

  3. Mutual Funds & ETFs

    Emerging Market ETFs EEM and VWO: Which ...

  4. Investing Basics

    What are examples of major companies ...

  5. Investing

    What Is The Real Picture Of Linn Energy?

Trading Center