Indias nifty50 has massively outperformed sp500 over previous 20+ years.

Hear me out earlier than downvoting. For these of you who don't know, nifty50 is indias benchmark inventory market index similar to sp500 besides it has 50 firms as a substitute of 500 firms. Over previous 20+ years nifty50 has massively outperformed sp500,nasdaq and dow and its not even shut.

(https://www.google.com/finance/quote/NIFTYBEES:NSE?window=MAX&comparability=NYSEARCApercent3ASPYpercent2CNASDAQpercent3AQQQpercent2CNYSEARCApercent3ADIA)

On jan 1st 1999, nifty50 was at 890..as we speak its at 18000+..in previous 24 years it has greater than 20x..in the meantime sp500 on jan 1st was at 1200 and as we speak its at 3900+..greater than 3x. Now i do know alot of you’ll deliver up foreign money. so lets contemplate that..in 1999 1 greenback was about 42 rupees..as we speak its 80 rupees…so rupee has misplaced roughly half its worth vs greenback however even than the distinction is huge.

Contemplate the next state of affairs.

1 greenback invested in Nippon India Nifty 50 Bees Etf(Niftybees)in jan 2002 can be value about $9 as we speak after accounting for foreign money distinction.

1 greenback invested in sp500 in jan 2002 in sp500 etf(spy) can be value about $3.50 as we speak.

I anticipate nifty50 to outperform sp500 much more over coming a long time given the truth that india is on its path to change into second largest nation by gdp by 2050. over subsequent 20-30 years india goes to be quickest rising asian financial system in keeping with morgan stanley. Just lately google, qualcomm, apple and so on all have introduced main investments in india. There will likely be billions pouring in overseas investments in indian financial system over subsequent few a long time. mix that with indias younger inhabitants and favorable demographics, india may see related progress like china in coming years.

However what about inflation? Now its true that india has the next inflation fee (about 6% yearly) however as a overseas investor you don't actually care about inflation in india as a result of you aren’t dwelling there. All you must care about is foreign money distinction and your return on funding.

Okay however about corruption and default dangers? India has large overseas reserve(about 600 billion and rising) so default is de facto not a priority..so far as corruption and different dangers goes, india has a regulatory company known as sebi which has similarities to sec. Basically there’s greater danger with growing international locations, nonetheless india has a reasonably robust regulatory and enforcement system.

I’ve been trying to put money into nifty50, however there is no such thing as a true etf for nifty50 in us markets.. most of them are equally weighted, or sector primarily based which isn’t what i’m searching for.

If you wish to put money into niftybees or different indian etfs, it’s important to open a checking account in india and make investments by means of a indian dealer.

Anyway my level is investing in nifty50 would offer you way more returns than sp500 over subsequent 10-20 years.. do you guys agree or am i lacking one thing right here? feedback and dialogue is welcomed. thanks.