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“At the start of 2020, it (Nifty) was at 12,000. Assuming a 12% CAGR per year, you expect that in six years the Nifty doubles. So even if by the end of 2025, it is at 25,000-26,000, that’s a reasonable return to expect,” he said.
However, Singh cautioned that while large-cap indices may offer consistent returns, investors in small-cap and mid-cap segments need to tread carefully.
Singh’s fund is primarily focused on the US market, with only 10–15% exposure to emerging markets like India.
Also Read: Goldman Sachs sees Nifty at 27,000 by Dec 2025 but expects a rangebound market near-term
Within Indian markets, his preference lies with banking stocks, citing valuations in other sectors as “super expensive” and in need of time corrections.
His fund adopts a macro, top-down approach and sticks to Nifty’s top 100 companies.
In the US market, Singh noted that the ongoing rally, which was initially concentrated in a handful of big tech stocks, is now broadening.
“For the last four or five months, the broadening has actually begun to unfold. We see stocks gaining 5-7% daily as they catch up to high valuations,” he explained.
While the Russell 2000 index still lags behind its 2021 peak, Singh sees signs of improvement in smaller US stocks.
Singh dismissed China as a long-term investment destination, calling it merely a “tactical trade” rather than a structural opportunity.
In contrast, he acknowledged India as a consistent 20-year growth story but urged investors to take profits selectively when the market appears frothy.
“India is the only market where people say it’s a consistent, bullish 20-year story. However, you should not hesitate to take money off the table when froth builds up,” he advised.
Also Read: Indian IPO market thriving, no evidence of excesses in markets, says former SoftBank exec
For more details, watch the accompanying video
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