RupeeCase
Education . Sequence risk . 2 of 3
Flip the cashflow, flip the lesson
For the investor still paying in, the early crash is the gift
A plain SIP, one lakh a year, through the same ten years. Meet the crash early on a small pot and you buy cheap for years. Meet it late on a big pot and the fall does the damage.
The SIP that met the crash early ends more than double the one that met it late SIP CORPUS . RS LAKH . 1 LAKH A YEAR . 10 LAKH PAID IN crash early 25 lakh crash late 11 lakh paid in 10 lakh 0 10 20 Crash in year 1 vs year 10 of the same set . net of nothing . illustrative
Source . illustrative . same returns, an early crash against a late one
Crash early and the SIP ends near 25 lakh on 10 lakh paid in. Crash late and it ends near 11 lakh. Same money, same market, same average, order reversed.