Archive · 28 Dec 2025
S&P 500 Outperforms Nifty 50 for Indian Investors
Indian investors who put ₹1 lakh in the S&P 500 and Nifty 50 in 2015 saw different results.
The Nifty 50 grew by 232%, turning ₹1 lakh into ₹3,32,460.
The S&P 500 grew by 230%, but because the rupee lost value against the dollar, the same investment became ₹4,36,100.
This extra ₹1,06,000 comes from the rupee getting weaker.
Experts say this shows why having some investments in global markets can help protect against currency losses and other risks.
It's like having a safety net for your money, especially for things like education or travel that cost dollars.
The rupee's poor performance in 2025, being the worst-performing Asian currency, highlights the importance of mean-reversion in currency values.
This means that currencies tend to return to their average value over time, affecting investment returns.
₹1 lakh invested in Nifty 50 in 2015 grew to ₹3,32,460 (232% return) over 10 years.
Same ₹1 lakh in S&P 500 grew to ₹4,36,100 (230% return) due to rupee depreciation.
Rupee depreciated by about 3% per year, from ₹60s per dollar in 2015 to ₹88-89.50 in 2025.
Additional gain of ₹1,06,000 (₹1,13,200 at current rupee levels) attributed to currency impact.
Experts recommend diversifying into global equities to safeguard against currency erosion and macroeconomic risks.
- Who
- Indian investors
- What
- Comparison of returns between S&P 500 and Nifty 50
- When
- Over the last 10 years (2015-2025)
- Where
- India and the US
- Why
- Due to rupee depreciation and currency impact on returns
Domestic Investments
Global Investments
Investment Returns
Domestic Investments
Nifty 50 provided a 232% return over 10 years, turning ₹1 lakh into ₹3,32,460.
Global Investments
S&P 500 provided a 230% return, but due to rupee depreciation, the same investment became ₹4,36,100.
Currency Impact
Domestic Investments
Domestic investments are less affected by currency fluctuations.
Global Investments
Global investments benefit from currency depreciation, adding an extra ₹1,06,000 to the returns.
Risk Management
Domestic Investments
Domestic investments are seen as safer due to familiarity and lower volatility in the local market.
Global Investments
Diversifying into global equities can safeguard against currency erosion and macroeconomic risks.
- Investment Amount
- ₹1 lakh
- Time Period
- 10 years (2015-2025)
- Nifty 50 Return
- 232%
- S&P 500 Return
- 230%
- Rupee Depreciation
- 3% per year (10 years)
- Rupee Value in 2015
- ₹60s per dollar
- Rupee Value in 2025
- ₹88-89.50 per dollar
- Nifty 50 Final Value
- ₹3,32,460
- S&P 500 Final Value
- ₹4,36,100 (at ₹88.68/dollar)
- Additional Gain Due to Depreciation
- ₹1,06,000 (₹1,13,200 at ₹89.50/dollar)
Sources
S&P 500 vs Nifty 50: Why ₹1 lakh in US index earned more for Indian investors despite lower 10-year returns? Explained
IT services, not index calls, key focus for 2026 amid currency and policy risks: Devina Mehra
Simhavalokana 2025: 10 things that Mr Market taught us in the year gone by
