Indian investors have earned more profits from investing in the stock market than from property and gold. Equity investors have received the highest returns in any 5-year period in the last 25 years.
According to a study by American financial services company Morgan Stanley, the wealth of Indian families has increased by about Rs 717 lakh crore in the last decade. Out of which about 11 percent is income from equity. If we compare the returns on equity investment from different investment options, then according to the report, equity has given returns of 15 percent CAGR in the period of 25 years. Whereas gold has increased by 11.1 percent, bank FD by 7.3 percent and the value of real estate in seven big cities of the country has increased by only 7 percent.
Apart from this, many interesting claims related to investment have been made in the report of Morgan Stanley, according to which Indian families earned about Rs 84 lakh crore from the stock market in 10 years, for which they invested only 3 percent. Indian families, including the founders of new companies, earned Rs 819 lakh crore in 10 years. The share of income from equity shares was about Rs 1 lakh crore i.e. 20 percent i.e. the promoters also earned about Rs 84 lakh crore. Equity investors had to face high volatility of 30.7 percent to get these returns. Whereas gold fluctuated by 11.3 percent and bank FD fluctuated by 1.6 percent.
The report says that Indians’ investment in equity may soon reach 10 percent. According to Morgan Stanley, in the last 10 years, the stake of retail investors in Indian shares has increased from 8 percent to 23.4 percent. In 2013 this share was 15.7 percent and in 2018 it was 20 percent.
According to this trend, the share of the common Indian in the stock market has increased rapidly in recent years. The market cap of all listed companies in the country has increased 4.5 times in 10 years. As of March 2014, their total market cap was Rs 101 lakh crore. Which has now increased to about Rs 437 lakh crore.
According to this, India is the fifth largest stock market in the world. India’s share in the market cap of companies around the world has increased to 4.3 percent. Which was at a low level of 1.6 percent in 2013. Due to increase in transactions in the market, security transaction tax collection in the country is also increasing rapidly.
Disclaimer: This information is for informational purposes only and should not be construed as investment advice. It is recommended to consult a financial advisor before making investment decisions.