Rs 10 lakh. Twenty years.
The price of stepping out.
| What you did |
Best days missed |
Ending value |
CAGR |
Growth |
| Stayed fully invested |
0 |
Rs 96.46L |
12.0 pct |
9.65x |
| Stepped out a little |
10 |
Rs 46.61L |
8.0 pct |
4.66x |
| Stepped out more |
20 |
Rs 28.63L |
5.4 pct |
2.86x |
| Stepped out often |
30 |
Rs 18.06L |
3.0 pct |
1.81x |
Most of the best days land within two weeks of the worst ones. The panic exit that dodges the crash is the same move that skips the rebound. You do not get to keep one without risking the other.
Illustrative. Rs 10 lakh held 20 years at a 12 pct fully-invested return, each step-out parks those few best days in cash at zero. Ten days out of roughly 5000 trading days is 0.2 pct of the calendar deciding half the outcome.