Nifty above 7,700 ! Surprised ?
The Total Returns Index, not known to many, is nothing but Nifty
plus the total dividends announced by Nifty companies, which are assumed
to be reinvested. Though not many are interested in dividends and are
concerned about only in the rise in share prices, this is a surprise
for them.
The Total Returns Index is currently above 7,700 (7,713 to be precise as on 1st Feb 2013), while the Nifty is below 6357, the all time high which it achieved in Jan 2008.
There is also Total Returns Index for Sensex which is currently at 26,230 and last time when we wrote about this index it was around 22,000. So what does this mean for a retail investor? Index investing better and that too investing in index ETFs like Nifty Bees, for a longer period of time, generates good returns along with the dividends announced.
Dividends play an important role in calculating your returns and hence before calculating your stock returns, check out how much
dividends you have received to get the exact returns.
Dividends do
matter !
