New Delhi6 minutes ago
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Indian investors have earned more by investing in equities than returns from property and gold. Equity investment has given the highest returns in any 5 year period between the last 1 year to 25 years.
According to a study by American financial services company Morgan Stanley, the returns from Indian equity (BSE Sensex) over 5 years, 10 years, 15 years, 20 years and 25 years are better than real estate, gold, 10-year treasury and bank fixed deposits. (FD) has been better than other asset classes.
According to the report, equity has given 15% compounded annual pre-tax returns (CAGR) over a period of 25 years. At the same time, gold has given 11.1%, bank FD has given 7.3% and property or real estate has given 7% in seven big cities of the country.
Findings of the Morgan Stanley report:
- Indian families earned about Rs 84 lakh crore from the stock market in 10 years. For this he invested only 3%.
- The wealth of Indian families increased by about Rs 717 lakh crore in a decade. Of this, about 11% came from equities.
- Indian families, including the founders of new companies, earned Rs 819 lakh crore in 10 years.
- The share of income from equity shares was around Rs 1 lakh crore i.e. 20%. That means the promoters also earned about Rs 84 lakh crore.
- Equity investors had to face high volatility of 30.7% to get these returns. Whereas gold fluctuated by 11.3% and bank FD fluctuated by 1.6%.
Indians' investment in equity will be 3%, soon 10%
Morgan Stanley economist Rhythm Desai said in the report, 'We believe that Indian households are still underinvesting in equities. In the coming year, their investment in equity may increase to cross the 10% mark, which is currently only 3%.
Retail investors' stake increased by 8% in 10 years
According to the report, in the last 10 years, the stake of retail investors in Indian shares has increased by 8% to 23.4%. This share was 15.7% in 2013 and 20% in 2018. According to this trend, the share of the common Indian in the stock market has increased rapidly in recent years.
Market cap increased record four and a half times in 10 years
The market cap of all listed companies in the country has increased 4.5 times in 10 years. Till March 2014, their total market cap was Rs 101 lakh crore, which has now increased to about Rs 437 lakh crore.
The market cap of listed companies had reached the highest level of Rs 477 lakh crore on September 27 this year. According to this, India is the fifth largest stock market in the world. This month, India's share in the market cap of companies around the world has increased to 4.3%, which was at a low level of 1.6% in 2013.
Security transaction tax reached Rs 36 thousand crores
Due to increase in market transactions, Security Transaction Tax (STT) collection in the country reached Rs 36 thousand crore between April and November. This is 97% of the budget target. STT on futures and options trading has been increased to 0.02% and 0.1% from October.
