EVALUATING LONG-TERM INVESTMENT STRATEGIES IN NIFTY 50 STOCKS

Abstract

The purpose of this study, "Evaluating Long-Term Investment Strategies in Nifty 50 Stocks: A Comparative Analysis of Lump Sum, Regular SIP, Step-Up SIP, and Modified SIP Over 25 Years Through Financial Crises," is to evaluate the long-term efficacy of four well-known investment strategies in the Indian equity market, with an emphasis on how well they perform during volatile times. Using 25 years of Nifty 50 data, including significant downturns such as the dotcom crash (2000), global financial crisis (2008), and the COVID-19 pandemic (2020), this study compares the risk-adjusted returns of lump sum investments, regular SIPs, step-up SIPs, and modified SIPs using metrics like volatility, XIRR, Sharpe ratio, and maximum dropdown. The study examines investor behavior patterns related to SIP and other investment strategies in addition to assessing performance. It will look at the risk preferences and emotional reactions of various investor types and explore how they make decisions during market highs and lows. Key findings of this study are: • determining which long-term wealth creation strategy is the most profitable and resilient. • being aware of the behavioral patterns that affect investment choices. • supplying investors and portfolio managers with useful, fact-based advice on how to maximize strategies in erratic markets. This research will provide a thorough and practical framework for accumulating wealth through disciplined investing across market cycles by fusing behavioral insights with financial analysis.