Learning the correct way for investments into direct equity is an art that every investor must develop over his/her lifetime. Although, the equity market is risky when compared to other investment products, it has the potential to generate the best returns in the long term.
To demonstrate what we have stated above, take a look at these examples from the stock markets (given below). These are just a handful out of numerous companies that have given such returns. The last column of the table below depicts the result of a hypothetical INR 100,000 invested in any of these companies over the stated time period.
|Name of Company||Start Date||Start Share Price||End Date||End Share Price||CAGR||Future Value of 1 Lac|
|Supreme Industries||1/1/2007||44||31/12/ 2016||740.75||36.85||16.8 Lacs over 9 years|
|CRISL||3/1/ 2005||54.7||1/1/2015||2095||43.99||38.3 Lacs over 10 years|
|Bosch||1/1/2004||1350.7||1/1/2015||23824||29.81||17.62 Lacs over 11 years|
|Page Ind.||1/1/2008||451.95||1/1/2015||11795||59.36||25.7 Lacs over 7 years|