Freelancing On ₹20,000 Per Month? Here’s How You Can Build Long-Term Wealth with Nifty 50 Index Fund

Freelancing offers flexibility and independence, but it also means dealing with irregular income. In this article, we’ll explain how a sall SIP of ₹1,000 in Nifty 50 index fund can help you build a financial cushion stress-free.

What Are Nifty Index Fund and SIPs?

• The Nifty 50 Index Fund invests in and tracks the NSE Nifty 50 index consisting of the top 50 stocks listed on NSE. These companies are considered to be market leaders and can be relatively less volatile during downturns.
• A Systematic Investment Plan (SIP) lets you invest a fixed amount regularly monthly, for example. Think of it like a subscription, but for your wealth.

How Much Can A ₹1,000 Monthly SIP in Nifty 50 Index Fund Grow in 5 Years?

As per an NSE report, index funds based on Nifty 50 have given an average return of 18.2% over 3 years and 17.6% over 5 years. Here’s a table that breaks down how your investment can grow in 3-5 years:

Note: Actual returns may vary based on market conditions and fund-specific factors.

How Can You Invest in Nifty 50 Index Fund?

There are several fund houses that offer index funds tracking Nifty 50. One of them is the Angel One Nifty 50 Index Fund. Launched as an open-ended mutual fund, this scheme is designed to mirror the performance of the Nifty 50 Index—, India’s most widely followed benchmark of 50 top-performing companies.

The Angel One Nifty 50 Index Fund aims to replicate the Nifty 50’s performance by investing in:

• Equity and equity-related instruments included in the Nifty 50 Index
• Equity derivatives for efficient portfolio balancing
• Money market instruments and government securities for short-term liquidity
• Units of liquid/money market mutual funds, as permitted by SEBI

This thoughtful diversification helps balance risk while staying true to the index.

Read more: What If You Invested ₹10,000 in Nifty 50 Index Fund 10 Years Ago?

Conclusion

Freelancing empowers you to take control of your career and life; —and that empowerment should extend to your finances. By starting small with a consistent SIP in index funds, you can build your financial future without the added stress of market volatility or complex stock picking. Start today!

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.