📈 Nifty 30-Year SWP Case Study
Date: September 13, 2025
⚠️ The following analysis is based on historical data and does not guarantee future results. This is not a buy recommendation. Always consult a qualified financial advisor before making investment decisions. Please verify all data and assumptions, as they may be incorrect or subject to change.
- Suppose you had invested ₹1 lakh in the Nifty in Nov 1995.
- You started monthly withdrawals at around 4% p.a. — ₹300 at the end of the first month, ₹302 at the end of the second month, and so on, gradually increasing to ₹1,014 by Sep 2025.
- By Sep 2025, even after all these withdrawals totaling about ₹2.35 lakhs, the investment value had grown to around ₹13 lakhs.
- By patiently staying invested during this period, your monthly withdrawal would have reached ₹600 by Aug 2008, which is around 7.5% p.a. — comparable to what most fixed-income instruments offer. By Sep 2025, your monthly withdrawal would have grown to over ₹1,014, which is around 13% p.a. — far exceeding what most traditional investment instruments provide. Over time, this would continue to grow along with your investment.
- Index investing is often underestimated, yet many mutual funds fail to outperform it.
- Even most stock portfolios fail to outperform the index — despite requiring much more time, effort, and emotional discipline.
- It is never ideal to make a lump sum investment. For example, if you had invested ₹1 lakh in Dec 2007 (just before a bear market), your investment would have stayed negative for a long time. By Sep 2025, it would have reached ₹1.06 lakh, despite withdrawals totaling ₹1.09 lakh.
- This example demonstrates why, based on historical data, it’s safer to spread your investment over a period of at least 3 years and then remain invested for 7–10 years to minimize the risk of losses.
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Note:💡 Coming up...
Date: TBD
- More case studies on SIPs
- Property vs. Index returns
- Gold vs. Nifty over decades
- Simple frameworks for financial decisions