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Nifty 50 SIP XIRR falls below bank FD returns over 5 years

The report notes the Nifty 50 SIP delivered an XIRR of about 4.5% over five years, while bank fixed deposits have returned roughly 6% to 6.5%.

Reported · Written up by our desk · Fund Industry

LiveMint Markets said the five year Nifty 50 SIP has produced an XIRR of only around 4.5%, which is below prevailing bank fixed deposit rates.

The outlet also pointed to a weak backdrop for Indian equities, citing the Nifty 50 down about 13.5% year to date, the BSE Sensex down close to 15%, and the Bank Nifty down around 8.5%.

It added that Nifty 50 five year CAGR has fallen below 5.5%, while bank fixed deposit returns have been in the 6% to 6.5% range.

LiveMint Markets said the underperformance of equities has also weighed on mutual fund results, arguing both equity SIPs and broader equity exposure have not beat long term inflation of about 6%.

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