Recently I had a conversation with my collegue and he asked me to suggest one fund which he can invest for his life. Now mostly I tell people to invest in 3 to 4 funds to actually invest in the total market. But if I have to suggest one fund where you can invest for life have to be Nifty50.
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Now just in crypto, if you have to invest in one crypto it has to be Bitcoin because it has the most market cap and the most stable crypto out there. Similarly if I talk about Indian Stock market, then Nifty 50 fits the criteria of stable as well as it has the most market cap. Like if someone is investing in crypto, he can invest in Bitcoin and doesn't have to think about any other cryptos and that's the same thing with Nifty50 too.
Now if I take a historic return of Nifty 50 for the last 25 years, it had generated around 18% returns annually which is to be honest great. If someone would have remain invested for 25, they would got a good compunding effect and thus their money would have became multiple times. I know the small cap, midcap or direct stocks seems lucrative, but if you have to invest in 1 fund then it has to be Nifty50.
I feel the top 50 companies which constitutes the Nifty 50 will remain intact and flourish in the longer run and if the company flourish, the money you are investment will also flourish. And that's the advice I have given to my collegue top.
I also told him to actually continue investment for longer period to actually get the benefit of the compounding effect. And if he can invest in more funds, then he can invest in midcap or small cap.
