Large-, mid- or small caps: How missing just 5 of market's best days in 21 years could cost you lakhs

Missing just five of the market’s best-performing days over the last 21 years could have significantly reduced investors’ wealth, according to an analysis by Abakkus Mutual Fund.

The study compared the compounded annual growth rate (CAGR) of major Indian equity indices between April 2005 and July 2026, highlighting the difference between staying invested throughout the period and missing the five best-performing market days.

₹1 lakh investment: Stay invested vs miss the best 5 days

Nifty 50: ₹5.55 lakh wealth gap

The Nifty 50 TRI, which tracks the performance of the 50 largest and most liquid companies listed on the NSE, recorded a 13.67% CAGR for investors who stayed invested throughout the period.

A ₹1 lakh investment made at the beginning of the period would have grown to around ₹15.39 lakh by July 2026. However, missing the five best-performing days reduced the final value to about ₹9.83 lakh, creating a wealth gap of ₹5.55 lakh.

The difference highlights how a few strong market sessions can have a meaningful impact on long-term returns, particularly when investors move in and out of the market.

Nifty 100: Similar impact from missing five days

The Nifty 100 TRI provides exposure to the 100 largest companies across the large-cap segment and therefore offers a broader representation of the large-cap market than the Nifty 50.

The difference in the final value of a ₹1 lakh investment was about ₹5.81 lakh. But missing the best five days resulted in a 2.32 percentage-point lower CAGR for the Nifty 100 TRI, compared with a 2.36 percentage-point decline for the Nifty 50 TRI.

Mid-cap index sees largest wealth gap

The difference becomes more noticeable in the mid-cap segment. The Nifty Midcap 150 TRI tracks 150 companies that fall within the mid-cap category.

It delivered the strongest CAGR among the four indices for investors who stayed invested.

But missing the five best days still reduced the eventual value of a ₹1 lakh investment by a substantial margin, resulting in the largest wealth gap of ₹9.38 lakh among the indices studied.

Small-cap index also shows significant difference

The Nifty Smallcap 250 TRI tracks 250 companies from the small-cap segment and represents a broader universe of smaller listed businesses.

The index also recorded a noticeable difference between staying invested and missing the five best-performing days. A ₹1 lakh investment saw a wealth gap of about ₹7.01 lakh between the two approaches.

The impact of missing the five best days was visible across market segments, from large-caps to mid-caps and small-caps.

“It highlights the severe financial penalties of attempting to time the market rather than remaining consistently invested,” the study noted.

The Nifty Midcap 150 TRI recorded the highest wealth gap of ₹9.38 lakh, while the Nifty 50 TRI recorded the lowest at ₹5.55 lakh.

The mid-cap index also delivered the highest CAGR among the four indices for investors who stayed invested, while continuing to lead even for those who missed the five best-performing days.

Disclaimer: This is purely for educational/informational purposes and should not be taken as any sort of investment advice. Always consult a SEBI-registered advisor before making any investment decisions.