The S&P 500 serves as a significant benchmark in the global stock market, representing the top 500 U.S. companies by market capitalization and replacing underperformers quarterly. The Nifty 50 is the Indian market's primary benchmark, offering potential for solid diversification and attractive long-term returns. Although the S&P 500 boasts a higher number of stocks, which allows for greater diversification, this doesn't guarantee better returns. The Nifty 50's concentration on 50 leading companies may reduce exposure to underperformers, positioning it as a strong contender for retirement portfolios.
The S&P 500 offers greater portfolio diversification, containing 10 times more stocks than the Nifty 50, which is more concentrated with only 50 stocks.
While the S&P 500 provides a larger number of stocks, it also includes underperformers, whereas the Nifty 50 focuses on the 50 top-performing companies in India.
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