Investing in Indian equities for long term: A timely opportunity?

Many people have this question at the top of their minds, so whether one should invest directly in equities or in equities through mutual funds.

As of today (Aug 2025), the Indian stock market presents a compelling case for long-term investors, despite short-term volatility and elevated valuations. The Nifty 50 closed at 24,870.10 on August 22. Earlier in the week, the index hovered above 25,050, reflecting a mixed performance driven by global cues and domestic earnings. Year-to-date, the MSCI India Index has underperformed, posting negative returns while global peers gained up to 18.9%, highlighting concerns over high valuations and external risks. However, for horizons of 5-10 years or more, India’s structural strengths outweigh these headwinds, making it an attractive entry point.

Economically, India remains a bright spot globally. The OECD projects real GDP growth at 6.3% for FY2025-26 and 6.4% for FY2026-27, powered by strengthening private consumption and government capital expenditure. Our Balance of Payments, Current Account Deficit, etc. remain healthy and robust too. Private sector balance sheets are not leveraged at all.  Long-term drivers include a young demographic, digital transformation via UPI and Aadhaar, and policy reforms like PLI  boosting manufacturing.

Sectors such as technology, and infrastructure are poised for multi-year expansion, with Economists noting “imminent recovery” and compelling opportunities in emerging markets equity. Medical tourism has taken the hospital shares to a different orbit.