look news india
Indian investors have earned more from investing in equities than the returns from property and gold. Equity investment has given the highest returns in any 5 year period between last 1 year to 25 years.
According to a study by American financial services company Morgan Stanley, the 5-year, 10-year, 15-year, 20-year and 25-year returns from Indian equities (BSE Sensex) are better than real estate, gold, 10-year and 25-year returns. Year Treasuries and Banks. Fixed Deposit (FD) is better than other asset classes.
According to the report, equities have delivered 15% compound annual pre-tax returns (CAGR) over a period of 25 years. At the same time, in seven major cities of the country, gold has given 11.1% return, bank FD 7.3% and property or real estate 7% return.
Conclusions of the Morgan Stanley report:
- Indian families have earned about Rs 84 lakh crore from the stock market in 10 years. For this he invested only 3 percent.
- The wealth of Indian families has increased by about Rs 717 lakh crore in a decade. Of this, about 11% came from equities.
- Indian families, including founders of new companies, have earned Rs 819 lakh crore in 10 years.
- The share of income from equity shares is approximately Rs. 1 lakh crore i.e. 20%. This means that the promoters also invested approximately Rs. Earned 84 lakh crores.
- To earn this return, equity investors had to face high volatility of 30.7%. While gold fluctuated by 11.3% and bank FD fluctuated by 1.6%.
Indians invest 3% in equities, soon 10%
“We believe Indian households are still underinvesting in equities,” Morgan Stanley economist Ridham Desai said in the report. In the coming year, their investment in equities may cross the 10% mark, which is currently only 3%.
Retail investors’ stake increased by 8% in 10 years
According to the report, the stake of retail investors in Indian stocks has increased by 8% to 23.4% in the last 10 years. This share was 15.7% in 2013 and 20% in 2018. In line with this trend, the share of the common Indian in the stock market has increased rapidly in recent years.
Securities transaction tax has reached Rs 36 thousand crores
Due to increase in market transactions, Security Transaction Tax (STT) collection in the country has 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.