Nifty50 SIP Returns Fall Behind Bank FDs Over Five Years
· Business · Economic Times, LiveMint
Systematic investment plans in the Nifty50 index have delivered an annualized XIRR of just 4.5% over the past five years, trailing the returns offered by traditional bank fixed deposits. Data from ACE MF shows that Nifty50 SIP returns dropped further over shorter horizons, posting negative 4.6% over two years and negative 10.5% over one year. In contrast, broader market indices demonstrated stronger performance, with the Nifty Midcap 150 returning 14.89% and the Nifty Smallcap 250 TRI returning 15.34% over five years. Analysts attribute the large-cap stagnation to high starting valuations and shifting investor preferences toward other global markets. Industry experts suggest focusing on individual stock selection and earnings growth rather than relying exclusively on index performance.
Why it matters
The underperformance forces retail and institutional investors to reassess long-term wealth creation strategies in Indian equities.
Read the original report — Economic Times
Join us on Telegram
Breaking news the moment it lands. At 10,000 members we ship the Android app.