Can Nifty reach 1 lakh?
Ofcourse it can. Currently, it is around 16,500. Ofcourse there are many other smaller targets like Nifty@20,000 and Nifty@25,000 and Nifty@50,000 and Nifty@75,000 and then comes Nifty@100000.
I recently heard a noted investor of India giving a target of 1 lakh for Nifty in a decade’s time.
So there are bound to be questions asked like:
- When will Nifty reach 1 lakh?
- What is the Nifty prediction for 1 lakh?
- When will Nifty reach 100000?
- What is Nifty prediction for 100000?
- When will Nifty double?
- What is Nifty prediction 2021?
- What is Nifty prediction 2022?
- What is Nifty prediction 2023?
- What is Nifty prediction 2024?
- What is Nifty prediction 2025?
- What is Nifty prediction 2026?
- What is Nifty prediction 2027?
- What is Nifty prediction 2028?
- What is Nifty prediction 2029?
- What is Nifty prediction 2030?
- What is Nifty prediction 2035?
- What is Nifty prediction 2040?
To be honest, predicting is a futile exercise as they say. But we can try and make intelligent guesses based on historical data and our own subjective and situational awareness.
So let’s explore the possibility of Nifty @1,00,000. But with caution and the acceptance that we can be very very wrong about the timelines. As for the idea about Nifty reaching 1 lakh in the future, it’s bound to happen no doubt. But when will it exactly happen, is what we attempt to guess intelligently here.
Currently, Nifty is at around 16,500 (in mid-August 2021)
So when will the Nifty reach @1,00,000?
Now let’s approximate the time required for Nifty to reach 1 lakh for different average return expectations. We have:
- At 6% average annual returns expectation, Nifty will reach Nifty@100000 in 2052.
- At 7% average annual returns expectation, Nifty will reach Nifty@100000 in 2048.
- At 8% average annual returns expectation, Nifty will reach Nifty@100000 in 2045.
- At 9% average annual returns expectation, Nifty will reach Nifty@100000 in 2042.
- At 10% average annual returns expectation, Nifty will reach Nifty@100000 in 2040.
- At 11% average annual returns expectation, Nifty will reach Nifty@100000 in 2039.
- At 12% average annual returns expectation, Nifty will reach Nifty@100000 in 2037.
- At 15% average annual returns expectation, Nifty will reach Nifty@100000 in 2034.
- At 17% average annual returns expectation, Nifty will reach Nifty@100000 in 2033.
- At 20% average annual returns expectation, Nifty will reach Nifty@100000 in 2031.
So many possibilities depending on how much returns the markets generate.
Further Reading – Nifty Annual Returns
But from all the above possibilities, if we stick to a rational range of 10-12% returns from equity over the long term and not be too adventurous about our expectations, then seemingly Nifty@1 lakh will be here by 2037-40. So that’s a way of saying that Nifty could touch 1 lakh level by 2037-40.
But that is just the extrapolation of an assumption. It might be right or it might be way off. Who knows. And if returns are much better than that as many expect given the upticks in various economic and financial parameters of the economy, then Nifty might touch 100000 even sooner. Maybe be 2030 or even 2032.
How to invest in Nifty@100000 prediction?
That’s true. I used the word prediction. Because that’s what it is. We can never be sure. But nevertheless, Nifty 1 lakh will come one day no doubt. It might come a little earlier than what we expect or might come a little later than when we expect it to.
Nifty at 1,00,000 is a real possibility. So what should be your investment strategy? I would say that there are just a few things to make sure when investing in equities and looking to ride to Nifty@100000:
- Invest because you need to invest based on your financial goals and need to have equity in your investment portfolio. Don’t get carried away by index levels. Don’t invest just because of FOMO or the Fear Of Missing Out.
- Unless you are a professional investor, your best bet is SIP and investing regularly. You may want to time the markets perfectly. And maybe you can. But if you doubt your abilities, then stick to simple regular investments of SIP instead of lumpsum investing.
- Go for proper financial planning and invest in good equity funds linked to your goals. Diversify across assets, mutual fund categories, AMCs, etc.
- Invest in equities only for long-term goals and not for short-term goals. Investing in equity for short-term goals may work out but it’s full of risk and hence, not suitable for most common investors.
If you are an investor who invests in large-cap stocks (via large-cap funds or index funds), then the index levels hold more meaning for you. You should also look at various index funds in India and decide which amongst the Sensex Vs Nifty you want to pick for passive investing.
So that’s it about Nifty 1 lakh.
I know you and I both want Nifty to reach 100000 as soon as possible. But it will take its own sweet time. So don’t just focus on the destination. Enjoy the journey as well. But the core idea remains the same. If you want to benefit from Nifty@100000, then you need to stay in equities for the long term. I have said this very often and still maintain that equities are likely to remain the best investment option from the long-term perspective.
Predictions about Nifty in 2021, Nifty in 2022, Nifty in 2023, Nifty in 2024 or Nifty in 2025 will be doled out generously by the financial media as they countdown to 100000 for Nifty. But you need to keep a sane head and approach investing in a sensible manner. Only then you will really benefit from Nifty@1lakh whenever that happens.