Nifty 50 Analysis: Missing Best Days Cuts Returns — SkimNews
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- Abakkus Mutual Fund analyzed the Nifty 50 Total Return Index from April 2005 to September 2026, finding it experienced 13 corrections of 10-20%, or about one every three years.
- The Nifty 50 TRI recovered from the bottom of these corrections to its previous peak in an average of 91 days, with the longest recovery after a March 2025 crash lasting until January 2026.
- Investors who stayed fully invested from 2005 to 2026 earned a 13.19% CAGR, but missing just the five best days reduced returns to a 10.86% CAGR.
- The analysis shows missing the 50 best days over that period would have flattened returns to a 0.66% CAGR, highlighting the cost of trying to time the market.
Why it matters: For equity mutual fund investors, the data quantifies the risk of exiting during a correction: missing a handful of key recovery days can cut annualized returns by nearly 20%. This provides a concrete, historical argument against market-timing strategies during downturns.
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