Market Correction Impact Calculator
Simulate a market crash during your SIP tenure and see the long-term impact
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Normal vs Corrected Portfolio
30% correction in Year 5 with 2-year recovery
Final Value Breakdown
Retained value vs impact of the correction
Correction Severity Analysis
Impact at different correction magnitudes (in Year 5)
| Correction | Final Value | Impact | % Impact |
|---|---|---|---|
| 10% drop | ₹94.97 L | -₹4.95 L | -4.9% |
| 20% drop | ₹90.02 L | -₹9.89 L | -9.9% |
| 30% drop | ₹85.08 L | -₹14.84 L | -14.8% |
| 40% drop | ₹80.13 L | -₹19.78 L | -19.8% |
| 50% drop | ₹75.19 L | -₹24.73 L | -24.7% |
SIP Advantage During Corrections
When markets fall, SIP investors actually benefit by buying more units at lower prices (rupee cost averaging). While the short-term portfolio value drops, the lower NAV means your future SIPs accumulate more units. Over the long term, SIP investors who stay disciplined during corrections often outperform those who stop their SIPs in panic. The key is to continue investing and let compounding do its work.
Year-by-Year Comparison
Normal vs corrected portfolio each year
| Year | Invested | Normal | With Correction | Gap |
|---|---|---|---|---|
| Year 1 | ₹1.20 L | ₹1.28 L | ₹1.28 L | +₹0 |
| Year 2 | ₹2.40 L | ₹2.72 L | ₹2.72 L | +₹0 |
| Year 3 | ₹3.60 L | ₹4.35 L | ₹4.35 L | +₹0 |
| Year 4 | ₹4.80 L | ₹6.18 L | ₹6.18 L | +₹0 |
| Year 5CRASH | ₹6.00 L | ₹8.25 L | ₹5.77 L | -₹2.47 L |
| Year 6 | ₹7.20 L | ₹10.58 L | ₹7.79 L | -₹2.79 L |
| Year 7 | ₹8.40 L | ₹13.20 L | ₹10.06 L | -₹3.14 L |
| Year 8 | ₹9.60 L | ₹16.15 L | ₹12.61 L | -₹3.54 L |
| Year 9 | ₹10.80 L | ₹19.48 L | ₹15.49 L | -₹3.99 L |
| Year 10 | ₹12.00 L | ₹23.23 L | ₹18.74 L | -₹4.50 L |
| Year 11 | ₹13.20 L | ₹27.46 L | ₹22.40 L | -₹5.07 L |
| Year 12 | ₹14.40 L | ₹32.23 L | ₹26.52 L | -₹5.71 L |
| Year 13 | ₹15.60 L | ₹37.59 L | ₹31.16 L | -₹6.43 L |
| Year 14 | ₹16.80 L | ₹43.64 L | ₹36.39 L | -₹7.25 L |
| Year 15 | ₹18.00 L | ₹50.46 L | ₹42.29 L | -₹8.17 L |
| Year 16 | ₹19.20 L | ₹58.14 L | ₹48.93 L | -₹9.20 L |
| Year 17 | ₹20.40 L | ₹66.79 L | ₹56.42 L | -₹10.37 L |
| Year 18 | ₹21.60 L | ₹76.54 L | ₹64.86 L | -₹11.69 L |
| Year 19 | ₹22.80 L | ₹87.53 L | ₹74.37 L | -₹13.17 L |
| Year 20 | ₹24.00 L | ₹99.91 L | ₹85.08 L | -₹14.84 L |
Calculator results are for illustration purposes only. Actual returns may vary based on market conditions, fund performance, and other factors. Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. Past performance does not guarantee future returns.