You must have seen the headlines and felt the buzz – Nifty 50
Index has reached a remarkable milestone, touching the magical figure of 20,000 points. It's literally the talk
of the town, the toast of the financial world, and it's a moment that we all must be aware of!
The Nifty 20,000 Hype: What's All the Fuss About?
Let's begin our journey by acknowledging the significance of
this milestone. Nifty's climb to 20,000 didn't happen by chance. It's the result of India's economy growing over
many years, investors believing in it, and the market staying strong. It shows how India's economy is constantly
getting bigger and its financial world is always changing and improving.
Simply put, Nifty 50 Index puts brilliance and innovation to the
forefront of Indian’s financial landscape. And therefore, as the aspiring youth of nation it’s important that
get acquainted with the protagonist of our narrative and its journey- Nifty 50 Index.
A Journey from Inception
Let's rewind to the very beginning, to November 3rd, 1995, the
day when Nifty 50 Index was born. This was the day when Nifty was launched and since then, it has been on a
relentless journey aiming towards growth. Now, if you are wondering what is Nifty 50 Index… Here you go!
Nifty 50 is a benchmark based index and also the flagship index
of NSE, which showcases the top 50 equity stocks traded in the stock exchange.
From its inception to the present day, Nifty 50 faced various
plot twists and challenges. But beyond the setbacks Nifty 50 Index proved its potential to its investors through
some delightful comebacks.
Some challenges along the way
1. Demonetization: In 2016, India underwent a massive
demonetization drive, causing uncertainty and disruption in the market. Nifty initially struggled as the market
dipped but soon regained its footing, proving its ability to bounce back.
2. LTCG Tax: The introduction of the Long-Term Capital
Gains (LTCG) tax in 2018 posed a challenge for investors. It had a significant impact on investors who had been
accustomed to tax-free returns on their investments. Despite this hurdle, Nifty 50 continued its upward
trajectory, showcasing its resilience.
3. Global Financial Crash: The subprime real estate
bubble burst and subsequent bankruptcy of Lehman Brothers led to a global capital market crash in 2007-08.
Despite the initial crash, Nifty 50 recovered over subsequent months to resume its growth trend.
4. COVID-19 Crash: The COVID-19 pandemic in 2020 sent
shockwaves through the global economy, leading to a sharp market crash. Nifty, however, demonstrated its
inherent strength by recovering swiftly, offering hope to investors.
It demonstrated that staying invested in the long run can yield
substantial rewards. Investors who trusted in Nifty 50 Index during its rollercoaster journey were handsomely
rewarded.
Imagine the spoils of victory
Imagine if you had invested 1 lakh in Nifty 50 during its
inception when it was at a humble 1,000 points. Now, if you had held onto your investments till date, you
would’ve gained INR 20 lakhs with it soaring to a jaw-dropping 20,000 points
Isn’t it crazy? That’s the power of long term
investments!
Keep no regrets. It’s never too late
While we can't time-travel, we can learn from Nifty's journey
that trust and time are the real money-making combo when it comes to investments.
Now if you really need more convincing then here are some
benefits that you can enjoy.
1. Diversification: Nifty 50 Index represents 50 of
India's top companies across various sectors, providing built-in diversification.
2. Historical Performance: Nifty 50 Index’s track record
shows the potential for long-term growth.
3. Liquidity: Nifty 50 Index is known to offer high
liquidity, making it easy to buy and sell as per your requirement.
4. Professional Management: Nifty 50 Index is passively
managed, reducing the need for active stock picking.
For those looking to start their investment journey with Nifty
50 Index, two popular options are Nifty 50 Exchange Traded Funds (ETFs) and Nifty 50 Index Funds. These
investment vehicles allow you to buy a diversified portfolio that tracks the Nifty 50 index, making it a
hassle-free way to get exposure to the Indian stock market.
So start investing in Nifty 50 ETF or Nifty 50 Index schemes and
be a part of this exciting journey.
Wrapping up
Nifty 50’s journey showcases the power of long-term investing
and the rewards it can offer. For today's youth, Nifty represents an opportunity that could lead to financial
independence. So, whether you're a seasoned investor or just starting, considering Nifty ETFs or Nifty Index
Funds is a step towards participating in the ongoing success story of the Nifty 50. Remember, it's never too
late to start your investment journey and trust in the power of compounding over time.
Mutual Fund investments are subject to market risks, read all
scheme related documents carefully.
