Strong Long-Term Market Data
Recent market data shows how steady investing works over time. The study looks at the Nifty 500 index and checks seven-year SIP returns using many different start points.
It clearly shows that long-term investing can give stable and healthy results, even if you start at different market levels.
Investing at Market Highs
Many people fear starting investment when the market is at an all-time high. But the data shows that even then, seven-year SIP returns were not bad. The lowest return was around 5 percent, the average was about 13.2 percent, and the highest went close to 18 percent. This shows timing is less important when you stay invested.
Starting After a Market Rally
Even if someone started investing after a strong 20 percent market rise, returns stayed reasonable. The average return was around 13.9 percent. The highest return reached nearly 19 percent, while the lowest was still around 2 percent. This proves that regular investing can work even after markets have gone up.
Investing After a Market Fall
When SIPs were started after the market fell by 20 percent, the results were also steady. The average return was about 11.6 percent. On the higher side, returns were near 15 percent, and on the lower side, around 8 percent. This shows that market falls can also be good entry points.
Power of Staying Invested for Years
The data clearly shows the benefit of long holding periods. If investments were kept for 10 years, there was a 99 percent chance of earning more than 7 percent returns.
For a 15-year period, the chance of earning more than 7 percent was 100 percent. Also, there was a 78 percent chance of earning more than 12 percent in 15 years.
Discipline Matters More Than Timing
Short-term returns can be weak and uncertain. But as the time period increases, the chances of earning better returns also rise. This data, based on the last 25 years, shows one clear thing. If you start anywhere and stay invested with discipline for many years, there is a strong chance you will make good money in the market.
