$3 Trillion! A Milestone In India’s Growth Story

India’s listed market capitalization hit USD 3 trillion in market cap for the first time on 24th May 2021, recording the day forever in the history books . It grew with 18% CAGR over the last 19 years which is evident from the growth of total market cap from USD 126 billion in 2002 to USD 3,003 billion in 2021 . Although significant portion of growth in total market capitalization of is on account of price appreciation of all listed stocks, but it also includes new listings, share issuances etc.

India has delivered strong results in terms of performance proving true on its well-publicized growth story, however for the skeptics who believe the story is over, India still has a long way to go. USA had a market cap of $46 Trillion USD at the end of April 2021  as compared to $3 trillion USD for India.

The question facing us now is how to participate in the India growth story? How to invest in the entire market? Presenting Motilal Oswal Nifty 500 Fund. The fund is passively managed fund; it aims to replicate the performance of Nifty 500 Index subject to tracking error.  It offers an investment opportunity to take broadest possible exposure to India’s equity market at low cost. It includes stocks from Large, Mid and Small cap size and is also well diversified across all key economic sectors.

The Nifty 500 Index had a market cap of USD 2.8 trillion on the same day that India’s total market cap hit $3 trillion . The index covers almost 94% of the total market cap in India making it the closest investable representative of the entire India’s listed market. The index has generated 17.5% CAGR from 2002 to 2021 which is in line with growth India’s equity market cap.

Conclusion: The Indian growth engine continues to chug along at a respectable speed and while the India growth story may have its ups and downs, but is far from over. The potential for multifold growth is present and the possibility of it happening is very high. Motilal Oswal Nifty 500 fund is the only Index fund that approximates the whole market, allowing you to participate in India’s potential growth in the years to come.

Disclaimer: Market Cap Performance Data as of 31-Mar-2002 and  24-May-2021 in USD, Nifty 500 Total Returns Index in performance data in INR from 31-Mar-2002 to 30-April 2021. Hypothetical performance results have may many inherent limitations and no representation is being made that any investor will, or is likely to achieve, performance similar to that shown. The above graph is used to explain the concept and is for illustration purpose only and should not be used for development or implementation of an investment strategy. Past performance may or may not be sustained in future.The statements contained herein may include statements of future expectations and other forward-looking statements that are based on our current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Readers shall be fully responsible/liable for any decision taken on the basis of this article. Mutual Fund investments are subject to market risks, read all scheme related documents carefully