Indian investors have made more profits by investing in the stock market than in property and gold. Stock investors have received the highest returns in any 5-year period in the last 25 years. According to a study by US financial services firm Morgan Stanley, the wealth of Indian families has increased by about Rs 717 lakh crore in the last decade, of which around 11 per cent is capital income.
If we compare the stock investment returns of different investment options, as per the report, stocks have given returns of 15 percent CAGR in the period of 25 years. At the same time, gold rose by 11.1 per cent, bank FDs rose by 7.3 per cent and property values in seven big cities of the country rose by just 7 per cent.
stock market at the forefront
Apart from this, many interesting investment-related claims are made in the Morgan Stanley report, according to which Indian families earned around Rs 84 lakh crore in the stock market in 10 years, for which they invested only 3 percent. hundred.
Indian families, including startup founders, earned Rs 819 lakh crore in 10 years. The share of income from shares was around Rs 1 lakh crore i.e. 20 per cent i.e. the promoters also earned around Rs 84 lakh crore.
To earn these returns, equity investors had to face high volatility of 30.7 per cent, while gold had 11.3 per cent and bank FDs had 1.6 per cent. The report says Indians’ investment in stocks could soon reach 10 per cent.
The proportion of retail investors is increasing in the stock market
According to Morgan Stanley, in the last 10 years, retail investors’ participation in Indian stocks has increased from 8 per cent to 23.4 per cent. In 2013, this proportion was 15.7 percent and in 2018 it was 20 percent.
Going by this trend, the participation of common Indians in the stock market has increased rapidly in recent years. The market capitalization of all listed companies in the country has multiplied by 4.5 in 10 years. As of March 2014, its total market capitalization was Rs 101 lakh crore.
Which has now increased to approximately Rs 437 lakh crore. According to this, India is the fifth largest stock market in the world. India’s share in the market capitalization of global companies has increased to 4.3 per cent. Which was at a low level of 1.6 percent in 2013. Due to the increase in market transactions, the collection of securities transaction tax in the country is also increasing rapidly.
