The Nifty has experienced a significant bull run since March 2020. We have analyzed the Nifty's returns starting from its 5000 level.`
As long-term equity is our recommendation, we have divided the data into four spans.
Source NGEN Markets
Due to the fear surrounding COVID-19, the Nifty fell from its January 2020 high to March 2020.
This decline was not based on fundamentals but rather on emotional reactions.
Subsequently, after reviewing the fundamentals, the Nifty has climbed to its current level of 25000.
Media outlets are predominantly highlighting the returns from the second span.
While we concur that predicting market movements is not feasible,
The current circumstances suggest a possible time correction—a period with little or no returns.
In such a scenario, it is advisable to steer clear of full equity schemes, especially if your investment horizon is under five years.
Hybrid schemes are preferable for an investment period of over five years.
Within hybrid schemes, there are numerous sub-categories;
it is important to select one that aligns with your risk tolerance and investment goals.
Please be aware that mutual funds do not guarantee any returns.
It is also important to remember that past performance is not indicative of future returns.
Best Regards,
Uddhav Tulshibagwale
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Was this article helpful?
That’s Great!
Thank you for your feedback
Sorry! We couldn't be helpful
Thank you for your feedback
Feedback sent
We appreciate your effort and will try to fix the article