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Highlights
- Indian stock market loses Rs 36 lakh crore amid West Asia conflict and energy crisis.
- Missing just 15 best trading days can cut long-term wealth by 66 per cent, shows Nifty data.
- Best market days often come in fear; staying invested earns 13.6 per cent CAGR returns.
However, if investors sell their shares in haste, they may miss out on future profits. According to a report by S Mutual Fund and FundsIndia Research, even during periods of significant market decline, there are still some good days. The research indicates that the market’s best days often occur immediately following its worst days.
According to the report, investors who maintained their investments from 1999 through this year—that is, up to 2026—have earned returns at a CAGR of 13.6 per cent. Conversely, those who missed just 15 of the market’s best-performing days over these 26 years saw the value of their investments decline by 66 per cent.
For investors who invested just Rs 10 lakh in the Nifty 50 TRI Index in 1999 and held onto their investment through every phase, the value of their capital has now grown to Rs 3.03 crore. Over the past 26 years, they have earned returns on their investment at an annualised rate of 13.6 per cent.
Nifty 50 TRI: Missing the 5 Best Days (1999 to 2026 YTD)
Investors who invested just Rs 10 lakh in the Nifty 50 TRI Index in 1999—but panicked and missed out on just the 5 best trading days—have seen the value of their investment grow to Rs 1.89 crore today. Over the past 26 years, they have earned an annualised return of 11.6 per cent on their investment. In other words, their final corpus ended up being 38 per cent smaller.
Nifty 50 TRI: Missing the 10 Best Days (1999 to 2026 YTD)
Investors who invested just Rs 10 lakh in the Nifty 50 TRI Index in 1999—but missed out on the 10 best trading days due to panic—have seen the value of their investment grow to Rs 1.37 crore. Over the past 26 years, they have earned an annualised return of 10.3 per cent on their investment. In other words, the value of their corpus ended up being 55 per cent lower than it could have been.
Nifty 50 TRI: Missing the 15 Best Days (1999 to 2026 YTD)
Investors who invested just Rs 10 lakh in the Nifty 50 TRI Index in 1999 but missed the 15 best trading days during this period saw the value of their investment grow to Rs 1.02 crore. Over the past 26 years, they earned an annual return of 9.1 per cent on their investment. In other words, the value of their corpus ended up being 66 per cent lower.
Nifty 50 TRI: Missing the 20 Best Days (1999 to 2026 YTD)
Investors who invested just Rs 10 lakh in the Nifty 50 TRI Index in 1999, but exited their investment during the 20 best trading days, saw the value of their money rise to Rs 77 lakh. Over the past 26 years, they earned an annual return of 8 per cent on their investment. In other words, the value of their corpus ended up being 74 per cent lower.
Missing the 25, 30, or 40 Best Days
Missing the 25 Best Days: An initial value of Rs 10 lakh grows to Rs 56 lakh, yielding an annual return of 6.9 per cent; the final corpus value is 80 per cent lower compared to those who maintained their investment throughout the entire period.
Missing the 30 Best Days: An initial value of Rs 10 lakh grows to Rs 46 lakh, yielding an annual return of 5.9 per cent; the final corpus value is 85 per cent lower compared to those who maintained their investment throughout the entire period.
Missing the 40 Best Days: An initial value of Rs 10 lakh grows to Rs 29 lakh, yielding an annual return of 4.1 per cent; the final corpus value is 90 per cent lower compared to those who maintained their investment throughout the entire period.
Missing the 50 Best Days: An initial value of Rs 10 lakh grows to Rs 19 lakh, yielding an annual return of 2.51 per cent; the final corpus value is 94 per cent lower compared to those who maintained their investment throughout the entire period.
The Best Days During Bad Times
Market history reveals that the most significant single-day rallies often occur precisely when the market is gripped by extreme fear and experiencing a downturn. For instance, during the Global Financial Crisis of 2008—when the market plummeted by nearly 60 per cent—22 of the top 30 best trading days occurred during that very period.
Similarly, in 2006, when the market declined by 30 per cent due to heavy sell-offs by FIIs and DIIs, three of the top 30 best days took place during that time.
During the COVID-19 era, when the market fell by approximately 40 per cent, four of the top 30 best trading days were observed.
May 18, 2009: 17.7 per cent
April 7, 2020: 8.8 per cent
January 25, 2008: 7.0 per cent
October 31, 2008: 7.0 per cent
October 13, 2008: 6.4 per cent
October 28, 2008: 6.4 per cent
June 15, 2006: 6.3 per cent
The report clearly demonstrates the critical importance of maintaining investments, even during challenging times. If investors miss out on just a few of the market’s best-performing days, their long-term returns could be significantly diminished. Between January 2005 and February 2026, the top 5 days alone generated returns of approximately 56.2 per cent; the top 10 days, 111.5 per cent; the top 15 days, 178.6 per cent; and the top 20 days, nearly 261.4 per cent. This is because these strong-performing days often occur right amidst market crashes.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
