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10-12% CAGR Return on Nifty expected over next three years

The current year view is reflecting a 3-year beneficial view as per the economy normalization. Also, the current situation reflects a 10-12% CAGR return of Nifty.

There is a strong chance of gaining profit by emerging markets including India as strong growth and low rates for equities is steering global risk.

Although the Indian and global market crashed by 35%-40% but it also got recovered with a lot of reforms.

The Central Banks expanded their balance sheets leading to decline in interest rates. The expansion of balance sheets also leads to a global liquidity. Simultaneously, a multiple-level transition can lead the global economy to an apex of new cycle.

Also, the multiple COVID vaccines are going to be worldwide available by 2021 which are currently in pipeline.

A large number of investors stepped towards Emerging Markets, Mid-and-Smallcap, and Cyclical markets, leaving Developed Markets, Largecap and Defensives.

Several high-frequency data points are stipulating a comeback of global economy to pre-COVID era.

This is the time for economic recovery where there is a high possibility of mid and small caps to outperform. The improving market breadth can provide various in-numerous opportunities.

Also, it is a good time for the investors to bring out their lump-sum investments for the next falling months.

Real GDP growth is also expected to be around 12% for 2022 as we can see a jump in low-skilled jobs in Urban areas as well.

India’s growth has reflected the highest potential after the government reforms post COVID period. As the economy is drastically improving day by day, hence, it would be best to take a 3 year view, says experts.

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