Index derivatives are derivative contracts which have the index as the underlying asset. The most popular index derivative contracts the world over…

Index derivatives are derivative contracts which have the index as the underlying asset. The most popular index derivative contracts the world over are index futures and index options. NSE’s market index, the Nifty $\displaystyle 50$ was scientifically designed to enable the launch of index-based products like index derivatives and index funds. Write its advantages.