Abakkus Mutual Fund’s analysis of the Nifty Midcap 150 index spanning April 2005 to August 2026 shows the index has fallen more than 20 per cent on five occasions over 21 years, averaging one such decline every 4.2 years.
The study further found that corrections of 10–20 per cent occurred eight times over the same period, roughly once every 2.6 years, while smaller pullbacks of 5–10 per cent happened 17 times, or approximately once every 1.2 years. As of August 31, the index stood at 23,537, sitting 0.01 per cent short of completing a full recovery cycle from its most recent drawdown.
Despite the recurring volatility, the data makes a case for staying invested. A lump sum of ₹10,000 placed in the Nifty Midcap 150 TRI in April 2005 and held through August 31, 2026, would have grown to ₹3,00,810, compounding at 17.23 per cent annually.
Attempts to sidestep market swings came at a steep cost. Missing just the five best trading days reduced the final corpus to ₹2,05,241, cutting the annualised return to 15.15 per cent. Missing the best 30 days shrank the final value to ₹66,638, dragging returns down to 9.26 per cent annually. Missing the best 50 days left investors with ₹33,258 — a CAGR of just 5.77 per cent.
Abakkus Mutual Fund, registered with SEBI in August 2025, said the findings were based on internal research and publicly available data.