It’s interesting how inflation can be a killer. The 2008 high of the Nifty was 50% lower than the highs in Jan 2018. And yet, because of inflation, the high then was more valuable than the high today.
See how Rs. 10,000 invested in the Nifty (with dividends reinvested) would have done in absolute terms (85,000 since year 2000) and then, we adjust it downwards for inflation for constant purchasing power.
Effectively, while the Nifty’s much higher, your money today buys you a lot lesser than the same thing in 2008.
High inflation can be a killer for investors over the long term – and it’s only now that inflation’s coming under control. A lot of “growth” has perhaps been in the smaller and mid cap stocks – but the Nifty itself has struggled to beat inflation.
Chart: The Nifty, Adjusted for Inflation, Still Lower Than 2008
Like our content? Join Capitalmind Premium.
- Equity, fixed income, macro and personal finance research
- Model equity and fixed-income portfolios
- Exclusive apps, tutorials, and member community
Subscribe Now
Or start with a free-trial
Already a subscriber?
Login Now
Related Posts
Looking for the best PMS for your investments? Find Capitalmind PMS Strategies and Performance here
As a high-net-worth investor in India, you have a wide range of options when it comes to choosing a portfolio management service (PMS) to invest your money. ...
The impact of Return on Capital on Shareholder Returns
Return on Capital (ROC) is considered a critical part of the puzzle of finding quality businesses to invest for the long term. We did a longitudinal analysis ...
Quick Look: Markets in April 2023
Markets in April 2023 April was a good month for stocks across the board. Nifty was up 4% and as a result is almost even for YTD 2023 Midcaps and Smallcaps did ...