What is the "Nifty 50"?

By Steven Merkel AAA
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. What is the difference between investing and trading?

    Investing and trading are two very different methods of attempting to profit in the financial markets. The goal of investing ...
  2. Is there a buy-and-hold strategy in forex, or is the only way to make money by trading?

    Typically there are different ways to trade in most markets. Traders have been classified into three groups, primarily based ...
  3. What was the first company with a $1 billion market cap?

    United States Steel Corportation (NYSE:X) was the world's first company to surpass the market capitalization mark of $1 billion ...
  4. Where can I find a list of all of the stocks in the S&P 500?

    The actual list of all 500 stocks in the S&P 500 is called the Constituent List. It can be found on the official Standard ...
RELATED TERMS
  1. Holding Period Return/Yield

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

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

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

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

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

    A stock that is out of favor with investors. The term unloved ...
comments powered by Disqus
Related Articles
  1. Achieving Better Returns In Your Portfolio
    Bonds & Fixed Income

    Achieving Better Returns In Your Portfolio

  2. Portfolio Mismanagement: 7 Common Stock ...
    Economics

    Portfolio Mismanagement: 7 Common Stock ...

  3. 3 Ways Price Momentum Can Burn Your ...
    Trading Strategies

    3 Ways Price Momentum Can Burn Your ...

  4. Portfolio Growth Strategies
    Investing Basics

    Portfolio Growth Strategies

  5. How To Calculate Your Investment Return
    Fundamental Analysis

    How To Calculate Your Investment Return

Trading Center