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  • News From Press Negative SIP returns in equity mutual funds? Here's a strategy to avoid downside

    Negative SIP returns in equity mutual funds? Here's a strategy to avoid downside

    If a stock falls by 75% from ₹100 to ₹25, it will need to gain 300% to recover to its original price
    Mint Sep 7, 2020

    Let's begin with some maths. If a stock falls by 25% from ₹100 to ₹75, how much do you think it will need to grow to get back to ₹100, the cost price? The answer is the stock will need to go up by 33.33% to get back to ₹100... Similarly, if ₹100 stock falls by 50% to ₹50, it has to go up by 100% to reach its original value. If the same stock falls by 75% to ₹25, it will need to gain 300% to recover to its original price and if it falls by 90%, it needs to go up by 900% to recover.

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