Missing a handful of market`s best-performing days, drastically reduces the CAGR on investments: Abakkus Mutual Fund
According to Abakkus Mutual Fund, investors who stayed invested throughout the period of April 2005 to July 2026 in equity markets, recorded higher returns than the ones who missed being invested by a few days.
Abakkus Mutual Fund has today released a research analysis on the Compounded Annual Growth Rate (CAGR) of major Indian equity indices over a 21-year period from April 2005 to July 2026. It highlights the severe financial penalties of attempting to time the market rather than remaining consistently invested.
% CAGR From April 2005 to July 2026:
|
Time Frame |
Nifty 50 TRI |
Nifty 100 TRI |
Nifty Midcap 150 TRI |
Nifty Smallcap 250 TRI |
|
Stayed invested all days |
13.67 |
14.00 |
17.20 |
15.80 |
|
|
|
|
|
|
|
Missed best 5 days |
11.31 |
11.68 |
15.12 |
13.83 |
|
Missed best 10 days |
9.75 |
10.10 |
13.61 |
12.46 |
|
Missed best 30 days |
4.68 |
5.07 |
9.21 |
8.25 |
|
Missed best 50 days |
1.00 |
1.40 |
5.71 |
4.91 |
Source: ACE MF, niftyindices.com, Abakkus Internal Research. For understanding purpose only. Past performance may or may not be sustained in future and is not a guarantee of any future returns. Index performance does not signify scheme performance. Data as on 31-Jul-2026.
Staying fully invested throughout the period of April 2005 to July 2026 in the Nifty 50 TRI delivered a robust CAGR of 13.67%. However, missing just the 5 best days dragged the returns down to CAGR of 11.31. For investors who missed the best 50 days, returns virtually flatlined to a CAGR of 1.00%. Staying investment for all days, during the period April 2005 to July 2026, recorded a high CAGR of 17.20% for Nifty Midcap 150 TRI and 15.80% for Nifty Smallcap 250 TRI. Missing the best 30 days reduced the CAGR by nearly 50% to 9.21% for Nifty Midcap 150 TRI and 8.25% for Nifty Smallcap 250 TRI. Missing the best 50 days, further dragged the returns down to CAGR of 5.71% for Nifty Midcap 150 TRI and 4.91% for Nifty Smallcap 250 TRI.
Above views are of the author and not of the website kindly read disclaimer
