Dear Team,
What is the your view on nifty index. If we do complete 100% SIP on nifty index only. For 10 to 15 years.
What’s your view.
Expected return
SIP investing on NIFTY index is very good.
Axis Nifty 100 index fund is a good choice for long term. A weekly SIP in this yield approx 9-10% XIRR in long term (based on India’s growth).
A complete portfolio will be like,
Nifty 100 index fund - 40%
2 Multicap funds or Flexicap funds - 30% each
This gives enough diversification too
For long term avoid sectoral Indices like Nifty Pharma, Bank and so on.
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Over the very long term, costs matter a lot and therefore, your choice of sticking with index funds will give you good exposure at a low cost.
The UTI Nifty 50 index fund is a good choice, IMO.
As market matures, past returns become less, so Nifty may give return of 10-12% at best.
Also, it is not about how much return you get when it comes to mutual funds, if you are investing with a goal in mind, this goal should be reached.
If Nifty gives 20% returns this year, and -10% returns the next year, in 2 years you get only 10%.
So if when you get such 20% return, you should sell some and move that profit to a debt fund.
And all of this is part of a plan, goal based investing.
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These are rolling returns if you stay invested for 15 years in nifty from follwoing websidte
Though data points are less, as @GB26 mentioned there is a trend of lower returns… it may or may not true in future, but still it’s safe assumption to assume returns around 10%
This is key… you won’t put money just because you have it. What is your goal…? how much extra money you would like to put in (step up) every year?
Ultimately one should be more interested in the final number and how to achieve it.
Return is not the end goal, this is a vehicle to achieve the goal. So think about following
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Dear Rajendra Patil sir,
For your guidance