Nifty Smallcap Index Shows Frequent Declines Over 20 Years

The Nifty Smallcap 250 Index has seen big drops more often than the Nifty 50 Index over the past 20 years.

In 12 out of 20 years, the small-cap index fell by more than 20% at some point during the year.

This shows that small-cap stocks can be riskier but also offer higher returns.

The study found that investing at different times can lead to very different outcomes.

For example, investing just before a big market drop, like the 2008 financial crisis or the COVID-19 crash, gave much lower returns than investing at the bottom of those drops.

However, systematic investing over a long period, like a 10-year SIP, can reduce the impact of market timing and provide steady returns.