Nifty Midcap 150 drops 20%-plus once every 4.2 years, shows 21-year data
Despite the recurring volatility, the data makes a case for staying invested
Over the past 21 years, the Nifty Midcap 150 index has fallen more than 20% five times, with such declines happening roughly every 4.2 years. Additionally, the index has experienced eight corrections of 10-20%, occurring about once every 2.6 years, and 17 pullbacks of 5-10%, roughly once every 1.2 years. Currently, the index is at 23,537, just 0.01% short of recouping from its most recent drop.
Despite this volatility, the data suggests benefits of staying invested. A ₹10,000 investment in the Nifty Midcap 150 TRI since April 2005, held until August 2026, would have grown to ₹3,00,810, with an annual growth rate of 17.23%. However, avoiding market fluctuations comes at a significant cost. For instance, missing the five best trading days reduced the final corpus to ₹2,05,241, cutting the annualized return to 15.15%.
Leaving out the best 30 days resulted in ₹66,638, with annualized returns dropping to 9.26%. By missing the best 50 days, investors would have had ₹33,258, yielding a meager 5.77% annualized return. Abakkus Mutual Fund, registered with SEBI in August 2025, based these findings on internal research and publicly available data, emphasizing the importance of a long-term investment strategy in the face of market volatility.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
