The market’s March 2026 correction has brought Nifty 50 trailing PE down to 20, which is now well below its 5 yr average of around 25.
Midcap and small cap index PEs are now down to around their 5 yr averages.
Nifty 50 Index is a compelling investment argument today on account of:
- Valuations which are below historical averages
- The most resilient set of stocks being the largest 50 – a quality that is vital in these highly uncertain times
- Well diversified exposure across sectors
Investing in a Nifty 50 Index fund is not just for beginners – it represents today the simplest yet among the smartest ways to build wealth over time.
While the range of passive funds has grown very impressively in recent years to straddle cap sizes, themes, sectors and factors, the overwhelming market favourite in terms of flows (not including EPFO) continues to be large cap index funds like Nifty 50 Index fund.
While the case for a Nifty 50 Index fund is already very well accepted as a beginner’s first choice, more experienced investors are also increasingly gravitating to allocate a sizeable chunk of their core portfolio to cap based index funds such as Nifty 50.
Core as passive and satellite as active is a strategy that is gathering increasing acceptance among investors.
Sirshendu’s advise to investors who are sitting on the sidelines fearful of geopolitical fallout on markets: bull markets are born amidst tough times – invest in the simplest yet arguably one of the smartest wealth builder solutions today – Nifty 50 Index Fund.