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Drawdown Backtester

Market Crash & Recovery Lab (Stress-Tester)

Verified Indian financial mathematics, statutory regulations, and step-by-step actionable breakdowns.

Tags:#Market Crash#Drawdown#Recovery#Rupee Cost Averaging#SIP Behavior#Rebalancing
Portfolio Stress-TestLearning Lab • Wave 1

Market Crash & Recovery Lab

Simulate hypothetical market drawdowns, test asset allocation cushions, and observe how continuing vs pausing SIPs alters your recovery timeline.

Load Example:
Max Peak-to-Trough DrawdownModerate
-10%
Lowest Val: ₹23.86 L
Time to Recover Prior PeakBreakeven
17 Months
1.4 Years
SIP Capital Invested in DipRupee Cost Averaging
₹3,60,000
3,033 units bought at discount
Final Recovered PortfolioFinal Wealth
₹54.76 L
Gain: +₹29.76 L

Crash & Portfolio Variables

Hypothetical Simulation
Starting Portfolio Value₹25,00,000
Monthly Regular SIP₹30,000/mo
Equity Crash Depth-40%
Mild Correction (-15%)Severe Meltdown (-65%)

Behavior Comparison: Terminal Wealth Across Choices

Option 1: Continue SIP
₹54.76 L

Buys through bottom

Option 2: Pause SIP (Panic)
₹49.02 L

-₹5.74 L penalty

Option 3: Boost SIP (+50%)
₹57.63 L

+₹2.87 L extra gain

What Changed? Key Educational Takeaway

When equity markets dropped by 40%, continuing your monthly SIP of ₹30,000 allowed you to acquire units at deep discounts. Comparing final wealth across behaviors: Continuing SIP yields ₹54.76 L, while Pausing SIP in panic yields only ₹49.02 L (a difference of ₹5.74 L). Stepping up SIP by 50% during the crash generates ₹57.63 L.

Educational Decision Lab Notice: This simulator is developed strictly for educational literacy and hypothetical scenario comparison. myfinedu.com is not registered as a SEBI Research Analyst, Investment Adviser, or Portfolio Manager. None of these projections constitute personalized financial advice, investment recommendations, or endorsement of specific financial instruments. Past performance and illustrative model rates do not guarantee future market returns.

Mathematical Formula & Calculation Engine

Simulates asset-class shock paths (equity drawdown down to trough, gold flight-to-safety, debt yield stability), monthly SIP unit accumulation at depressed NAVs, and recovery shapes.

Drawdown % = (Peak - Trough) / Peak | Recovery Time = Months until Portfolio >= Prior Peak

Why Use the Market Crash Lab?

Visualizes the exact cost of panic-selling during severe bear markets
Proves how continuing SIPs accumulates extra units at discounted NAVs
Calculates realistic months required to regain prior portfolio peaks
Tests multi-asset diversification cushions (Equity, Debt, Gold)

Market Crash Lab FAQs

Pausing your SIP during a crash deprives you of Rupee Cost Averaging. You miss buying units at multi-year low NAVs, resulting in significantly lower terminal wealth when markets inevitably recover.

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