When we look back at the last three decades, the Indian economy has navigated through multiple shocks, each severe enough at the time, to trigger panic, fear, and deep uncertainty which made many long-term investors even forget their financial goals. Some of the most defining disruptions include:
- The Balance of Payments Crisis (1991)
- The Asian Financial Crisis (1997–1998)
- Sanctions after the Pokhran Nuclear Tests (1998)
- The Kargil War (1999)
- The Dot-com Bubble burst (2000–2001)
- The Global Financial Crisis (2008–2009)
- The Taper Tantrum and CAD/forex scare, when India was labelled among the “Fragile Five” (2011–2013)
- The Twin Balance Sheet and NPA crisis (2014–2018)
- Demonetisation (2016)
- GST rollout (2017)
- The IL&FS default and NBFC liquidity crisis (2018–2019)
- The COVID-19 pandemic (2020)
- The geopolitical impact of the Ukraine war (2022–ongoing)
- The Israeli conflict and broader Middle East tensions (2023–ongoing)
And while we are writing this, we also hear about the Chinese vessels encircling Taiwan, US raid on Venezuela and the Iran unrest. Honestly, this list will never truly end.
As someone who has spent years in finance, one thing has become very clear to me: economic cycles, global conflicts, policy shifts, and financial disruptions are permanent features of the investing universe. They are not exceptions; they are the norm.
What changes over time is not the occurrence of these events, but how investors respond to them.
Now, let’s look at what disciplined, long-term investing has delivered despite all these upheavals*:
- Nifty 50 over the last 20, 15, and 10 years has delivered annualised returns of 11.61%, 10.61%, and 13.19%, respectively.
- Nifty 200 over the last 20, 15, and 10 years has delivered annualised returns of 11.69%, 11.22%, and 13.83%, respectively.
- Nifty 500 over the last 20, 15, and 10 years has delivered annualised returns of 11.84%, 11.53%, and 14.13%, respectively.
What does this data clearly tell us?
Markets always reward patience, discipline, and long-term conviction.
Every crisis listed above felt like the “end of the world” when it was unfolding. News headlines were grim, sentiments were weak, and investors questioned whether markets would ever recover. Yet, for investors who stayed invested through these numerous corrections, each crisis eventually became just another dip on a long upward journey.
Markets react sharply only to those events which it hasn’t anticipated. When we step back and look at the big picture, these sharp corrections appear far less intimidating. What once felt like permanent damage turns out to be temporary noise in a long-term growth story.
Staying invested, continuing systematic investing, and allowing compounding to work overtime have historically created superior outcomes. The biggest gains have not come from perfect timing, but from time that is spent in the market.
Remaining invested through uncertainty gives compounding the time required to deliver long-term results.
The world will continue to look uncertain from time to time. That is inevitable. But long-term investing has repeatedly proven to be remarkably resilient. Investors need to realise that such events are opportunities to invest more. However, if one doesn’t have the liquidity to invest during such crises, doing nothing will work in favour of their financial freedom. Market volatility is not a foe, it is a quiet ally, helping patient investors build meaningful wealth over time.
*Point to Point CAGR as on 15th January 2026. Source – NSE India
Disclaimer: This article is for information and education purpose. The article should not be considered as an invitation or recommendation to invest in equity or equity mutual funds. Mutual Fund investments are subject to market risks. Readers should consult an advisor or mutual fund distributor before making an investment decision.
Shreedhara is the Founder & Director of Ara Financial Services Pvt. Ltd. He has an experience of over 2 decades in Financial Service Industry with majority of it in guiding individuals and institutions on their investments requirements.
