Falling in the share market is a common type of profit booking. Because there are ups and downs in the stock market. Sometimes there is a rise in the stock market and sometimes there is a fall due to profit booking. Right now the stock market is down 10% from its high level. So this time is a right way for us to invest in mutual funds. Either there is a right opportunity for us to invest in the good stocks which we have analyzed ourselves, where we can make our profits very well. However, it is a little difficult to predict how much the market will fall or how much the market will rise within the stock market. But through support and resistance, a little can be predicted as to where the market is going to fall and where the market is going to rise. So let us understand how many times the market has fallen before and how much CAGR RETURN has been achieved in the index within the market.
YEAR |
REASON |
INDEX FALL |
1992 |
HARSHAD MEHTA SCAM |
12.77 % |
2004 |
UPA GOVT ELECTION |
15.52 % |
2008 |
FINANCIAL CRISIS 5 TIMES |
50 % |
2016 |
GLOBAL WEAKNESS AND INDIAN BANK LARGE NPA & DEMONETISATION |
26 % |
2020 |
COVID-19 PANDEMIC |
50% |
2023 |
UKRAINE-RUSSIA WAR |
12 % |
As shown above, all of these declines are large declines, with smaller declines not taken into account. Which happens sometimes. Even after this, the market has shown very good recovery, be it the Harshal Mehta scam, or the financial crisis, or the NPA of the banks and the biggest decline was in Covid-19 which was 50%. Even after that there has been a very good recovery in the market.
Let's see, what is the CAGR RETURN of Nifty, Bank Nifty, Sensex, Mid Nifty ?
CAGR RETURN
Index |
Return |
NIFTY |
16%+ |
BANKNIFTY |
17%+ |
SENSEX |
16%+ |
MIDCAP |
17%+ |
SMALL CAP |
18%+ |
So after seeing all these declines, you do not need to worry at all about small declines. Rather, you need to do very good research as to which stock will perform well and how should we create a diversified portfolio? So that our returns will be very good.
1 Comments
Prankrishna Mallik
Investment And Swing