Missing best days in market crash phase
Why Should You Keep Stay During Bad Market Phase : There has been sharp ups and downs in the Indian stock market throughout this month. Due to Iran war and energy crisis, the market cap of BSE listed companies has decreased by about Rs 36 lakh crore since February 27. Investors are facing huge losses, some investors may feel that it would be better to sell their shares now to avoid these fluctuations.
But if investors sell shares too early, they may miss out on future profits. According to a report by Ace Mutual Fund and FundsIndia Research, even when there is a big decline in the market, there are some good days. According to research, the best days of the market often come immediately after the worst days.
According to the report, investors who have maintained their investments since 1999 till this year i.e. 2026 have got returns at the rate of 13.6 percent CAGR. Whereas those who missed only 15 days of the market’s best days in these 26 years, the value of their investment decreased by 66 percent.
Read full article
Nifty 50 TRI: Value of 10 lakh investment (1999 to 2026 YTD)
Investors who had invested only Rs 10 lakh in Nifty 50 TRI index in 1999 and maintained their investment in every phase, the value of their money has now increased to Rs 3.03 crore. He has got 13.6 percent annual return on his investment in the last 26 years.
Nifty 50 TRI: 5 Best Days to Miss (1999 to 2026 YTD)
Investors who had invested only Rs 10 lakh in Nifty 50 TRI index in 1999, but got nervous and missed only 5 best days, the value of their money has now increased to Rs 1.89 crore. He has got 11.6 percent annual return on his investment in the last 26 years. That means there was 38 percent less corpus.
Nifty 50 TRI: 10 Best Days to Miss (1999 to 2026 YTD)
Investors who had invested only Rs 10 lakh in the Nifty 50 TRI index in 1999, but got nervous and missed the 10 best days, the value of their money has now increased to Rs 1.37 crore. He has got 10.3 percent annual return on his investment in the last 26 years. That means the value of the corpus was 55 percent less.
Nifty 50 TRI: 15 Best Days to Miss (1999 to 2026 YTD)
Investors who had invested only Rs 10 lakh in Nifty 50 TRI index in 1999, but missed 15 best days during this period, the value of their money has now increased to Rs 1.02 crore. He has got 9.1 percent annual return on his investment in the last 26 years. That means the value of the corpus was 66 percent less.
Nifty 50 TRI: 20 Best Days to Miss (1999 to 2026 YTD)
Investors who had invested just Rs 10 lakh in the Nifty 50 TRI index in 1999, but exited the investment during the 20 best days, the value of their money is now Rs 77 lakh. He has got 8 percent annual return on his investment in the last 26 years. That means the value of the corpus was 74 percent less.
-
Photo:
On missing 25, 30, 40 best days
25 On Missing the Best Day: Value of Rs 10 lakh Rs 56 lakh, 6.9% annual return, corpus value 80% less than those who remained invested the whole time.
Missing 30 best days: Value of Rs 10 lakh Rs 46 lakh, 5.9% annual return, corpus value 85% less than those who remained invested the whole time.
40 Best Days Missed: Value of Rs 10 lakh Rs 29 lakh, 4.1% annual return, corpus value 90% less than those who remained invested the whole time.
On missing 50 best days: Value of Rs 10 lakh Rs 19 lakh, 2.51% annual return, corpus value 94% lower than those who remained invested the whole time.
Best day in bad times
Market history shows that the biggest one-day rallies often occur when there is a lot of fear and decline in the market. For example, 22 of the top 30 best days occurred during the 2008 Global Financial Crisis, when markets fell nearly 60%.
Similarly, in 2006, the market fell by 30 per cent due to FII and DII heavy selloff, during which time 3 of the top 30 had their best days.
During the time of Covid-19, when the market fell by almost 40%, 4 out of the top 30 saw their best days.
Some of the biggest gains in the market
7 April 2020 : 8.8%
25 January 2008: 7.0%
31 October 2008 : 7.0%
13 October 2008: 6.4%
28 October 2008: 6.4%
Report Conclusion
It is clear from the report how important it is to maintain investment even in difficult times. If investors miss just a few of the market’s best days, long-term returns could be significantly lower. Between January 2005 and February 2026, only the top 5 days gave a return of about 56.2%, the top 10 days gave a return of 111.5%, the top 15 days gave a return of 178.6% and the top 20 days gave a return of about 261.4%. Because these strong days often come in the middle of market crashes.
Disclaimer: This article is only for information and based on research report. These are not the personal views of ET Now Swadesh. There are risks in the market, so before investing, consult an expert at your level.
related news
Author
end of article
