Indian Stocks Shine Over Two Decades: Nifty 50 Delivers 14% CAGR and Multiplies Wealth 13 Times
If you’re wondering where to park your money for the long haul, Indian stock markets have some impressive stories to tell. A new report from FundsIndia shows that the Nifty 50 index has given investors a solid compound annual growth rate (CAGR) of 14% over the past 20 years. That means your investment could grow 13 times—turning ₹1 lakh into ₹13 lakh!
Gold edges out stocks just a bit, with a 14.7% CAGR that boosted wealth 16 times in the same period. But real estate and debt markets lagged behind, offering 7.7% and 7.5% CAGR respectively. These numbers come from FundsIndia’s latest ‘September Wealth Conversation Report’, highlighting why diversified investing in Indian equities matters.
Zoom out further, and the picture gets even brighter. Over 35 years, Indian equities clocked a 13.6% CAGR, multiplying money a whopping 88 times. No wonder long-term stock investing in India is a favorite for building wealth.
Globally, the US S&P 500 matched gold’s performance with a 14.7% CAGR over 20 years, growing investments 15.6 times. But in India, smaller players stole the show. Mid-cap stocks in the Nifty Midcap 150 surged at 16.2% CAGR, turning money 20 times in two decades. Small-cap stocks via the Nifty Smallcap 250 weren’t far behind at 14.2% CAGR and 14 times growth. Large-caps in the Nifty 100 delivered a steady 13.9% CAGR, multiplying wealth 13.6 times.
The report stresses why patience pays off in stock market investing. Short-term trades can be risky—43% of intraday Nifty 50 trades end in losses, dropping to 39% for one-month holds and 23% for a year. But hold on longer, and the odds flip: only 6% chance of negative returns over three years, 0.1% over five years, and zero risk for seven to ten years.
Even better, Indian equities like Nifty 50 doubled investors’ money 73% of the time in just 6-7 years. They tripled 80% of the time in 10-11 years, and quadrupled 76% of the time in 12-13 years. This data makes a strong case for staying invested in the Indian stock market rather than chasing quick wins.
Whether you’re new to investing or a seasoned player, these insights from the FundsIndia report show how equities can build real wealth over time. Ready to explore Nifty 50, mid-cap, or small-cap opportunities?
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