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.
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.
You can transact faster and enjoy more features on ICICI Pru AMC once you log in!Login Now