From ₹1 lakh to ₹34 lakh in Nifty 100 over two decades: What the 2008 and Covid crashes teach investors

A ₹1 lakh investment in the Nifty 100 TRI made in 2003 would have grown to ₹34.46 lakh by June 2026, translating into a 16.2% CAGR over more than two decades, according to data released by UTI Mutual Fund.

The Nifty 100 TRI (Total Return Index) tracks the performance of the 100 largest and most liquid companies listed on India’s stock exchanges. Unlike the regular price index, it also accounts for dividends, assuming they are reinvested in the index.

How ₹1 lakh invested in 2003 moved through market corrections?

The most striking part of the data is the gap between the size of individual market falls and the eventual value of the investment.

During the 2008 Global Financial Crisis, the Nifty 100 TRI fell 61%. A few years later, the Euro debt crisis triggered another 29% decline, while the 2016 demonetisation-related correction saw a 21% fall.

The sharpest recent shock came during the Covid crash in 2020, when the index fell 38%. Investors later faced another 17% correction during the 2022 global correction and a similar 17% decline amid US tariffs and the West Asia conflict in 2025.

Yet, an investor who had remained invested through these episodes would have seen ₹1 lakh turn into ₹34.46 lakh by June 2026. The numbers show why looking only at individual market crashes can give an incomplete picture of long-term investing.

A 30%, 40%, or even 60% decline can substantially reduce the value of an investment in the short term. But over a long enough period, the market can recover from those declines and continue to compound.

How does volatility affect investor behaviour?

Market movements can also influence investor psychology. According to a UTI Mutual Fund presentation, rising markets can fuel optimism, which may turn into excitement and enthusiasm, eventually prompting investors to take greater risks.

Near market peaks, the fear of missing further gains can become particularly powerful.

The direction changes when markets fall. Anxiety can give way to denial, fear and panic, followed by a desire to exit. After a deep decline, some investors may become so discouraged that they stay away even when markets begin recovering.

An investor who exits during a sharp fall may protect themselves from further losses, but could also miss the subsequent recovery. Similarly, an investor who becomes overly confident after a sustained rally may take on more risk just before a correction.

Therefore, the Nifty 100 data tells two stories at once. One is about numbers: ₹1 lakh becoming ₹34.46 lakh at a 16.2% CAGR despite multiple crashes. The other is about behaviour: markets move in cycles, and investor emotions often move with them.

Disclaimer: This is purely for educational/informational purposes and should not be taken as any sort of investment advice. Always consult a SEBI-registered advisor before making any investment decisions.