STOCK MARKETs
creating wealth easy way...
stock markets
Stock markets are the most attractive way of creating wealth. Though the stock market indexes are giving attractive returns over the long run, majority of people have stayed away from it until recent years, since 2019 the interest has grown multifold, and more and more people are investing in the stock market.
Stock markets have given great returns and will continue to do so if one invests money for a longer period. As many great investors say, “The longer the period for which money is invested, the higher are the returns as the risk is minimized“
The stock market is the leading indicator of the economy, the growth of the Indian economy is reflected in the stock market. India being a developing country stock markets are the most efficient way to build one’s net worth going forward.
Why stock market
Investing in stock is like owning a slice of the company, there are thousands of companies in India out of which many are consistent performers, You do not need to be a genius to invest in the stock market, and you do not Always have to pick hidden gems to be successful investor. You just have to invest in a disciplined manner in top companies, it is one of the most efficient ways to build up one’s net worth.
- potential to earn higher returns
- protect wealth from inflation
- ability to earn regular passive income through dividends
- flexibility of investing in smaller amount
- returns have been better than fixed-investments
- availability of multiple options for diversification
- Ease of investing
- Liquidity
Historical returns of stocks
The list shows the best-performing stocks in the last 10 years. if one stays invested in the stock markets for the longer term, the investment is likely to generate magnificent returns. When investing one should not only look at the past performance, the fundamentals of the company are extremely important, stock with strong fundamentals is likely to give a good return in the long term. The stock market is volatile in the short term, however, investors with longer time horizons experienced much better returns.
Long-term investment always outperforms the investor who tries to time the market, one should always ride the temporary downswings without fear they are part of the stock market.
India is a developing country, emerging markets will always have higher return potentials. considering all the facts rapid growth in the Indian market is inevitable, however, one should hold his ground when the stock market is in a downtrend and look beyond.
Historical returns of Indexes
The below chart illustrates how indexes performed over the last five years(1,2,3,5) as of Sept 2022, No matter which index is chosen performance is far better than that of fixed instruments like Fixed Deposits, this clearly shows the potential of the stock market and stocks, once we have the long term goal and patience to hold for the long term we will always end up with a good return.
Index Return (CAGR)
| years | 1 | 2 | 3 | 5 |
| NIFTY 50 | 17% | 32% | 13% | 13% |
| NIFTY NEXT 50 | 20% | 43% | 14% | 10% |
| NIFTY 100 | 19% | 44% | 15% | 13% |
| NIFTY MIDCAP 50 | 23% | 62% | 18% | 13% |
| NIFTY MIDCAP 100 | 26% | 61% | 18% | 12% |
| NIFTY SMALLCAP 100 | 20% | 59% | 17% | 7% |
You dont have to be genius to invest in good stocks .
You don’t have to be an expert in picking the stocks, you just have to look around and see what is happening. look at the chart below all the companies are familiar, if you have diversified your investments with equal amounts among all the companies, as of Sept 2022 the performance for 1 year is 8 %, 3 years is 73%, 5 years is 137 % this is exceptional
It is impossible to catch the bottom of the market so it is extremely difficult to time the market. volatility is part of it. Investors often dislike uncertainty and become anxious when it occurs. Wars, natural disasters, and political unrest are all part of the stock market. One should not fear the market when such a thing happens eventually the bad phase will fade away.
While stock market investment entails risks and volatility, it also increases returns. if you approach the stock market responsibly. It turns out that, investing isn’t as hard as it might seem.
List of best performing stocks in last 5 years
| COMPANY | Oct 3 2022 price | Oct 3 2017 price | CHANGE (%) |
| APOLLO TRICOAT TUBES | 1,073.40 | 43.7 | 2356.29% |
| ALKYL AMINES | 2,911.80 | 172.86 | 1584.48% |
| ADANI POWER | 352.7 | 29 | 1116.21% |
| DEEPAK NITRITE | 2,105.90 | 193.2 | 990.01% |
| TATA ELXSI | 8,491.10 | 802 | 958.74% |
| BALAJI AMINES | 3,180.55 | 341.5 | 831.35% |
| LINDE INDIA | 3,344.75 | 379.2 | 782.05% |
| SRF | 2,544.05 | 314.18 | 709.74% |
| DIXON TECHNOLOGIES | 4,337.75 | 539.79 | 703.60% |
| VARUN BEVERAGES | 1,143.55 | 152.59 | 649.41% |
| J.B.CHEMICALS | 2,019.80 | 275.95 | 631.94% |
| MINDTREE | 3,245.80 | 479 | 577.62% |
| NAVIN FLUORINE | 4,519.55 | 691.65 | 553.44% |
| RADICO KHAITAN | 1,079.55 | 166.6 | 547.99% |
| COFORGE | 3,478.75 | 550.1 | 532.39% |
| MASTEK | 1,744.50 | 285.35 | 511.35% |
| L&T INFOTECH | 4,587.75 | 812.85 | 464.40% |
| COMPANY | Oct 3 2022 price | Oct 3 2017 price | CHANGE (%) |
| APOLLO PIPES | 529.45 | 98.97 | 434.98% |
| LAURUS LABS | 523.35 | 101.73 | 414.45% |
| PERSISTENT SYSTEMS | 3,297.30 | 659.65 | 399.86% |
| TRENT | 1,432.65 | 294.2 | 386.96% |
| GRINDWELL NORTON | 2,066.35 | 425.75 | 385.34% |
| USHA MARTIN | 120.85 | 25.7 | 370.23% |
| L&T TECHONOLOGY | 3,574.40 | 769.05 | 364.78% |
| ABBOTT INDIA | 18,989.70 | 4,179.95 | 354.30% |
| DIVIS LABORATORIES | 3,779.40 | 856.3 | 341.36% |
| KENNAMETAL INDIA | 2,608.35 | 592.55 | 340.19% |
| SOLAR INDUSTRIES | 3,999.70 | 914.65 | 337.29% |
| RELIGARE ENT | 170.1 | 39.25 | 333.38% |
| ACTION CONST. | 285.9 | 66.05 | 332.85% |
| VINATI ORGANICS | 2,070.00 | 479.35 | 331.83% |
| TITAN | 2,585.00 | 599.5 | 331.19% |
| ION EXCHANGE | 2,090.00 | 486.3 | 329.78% |
| POLYPLEX CORPORATION | 1,891.40 | 448.75 | 321.48% |
By looking at the above chart it is clear in a country like India there are always multi bagger stocks waiting to give Steller returns. you just have to keep open your eyes and ears..
To conclude the stock market is a powerful investment option that has the potential to generate long-term wealth for investors. It offers many advantages whether it is liquidity, diversification, ease of investment, or flexibility to invest in smaller amounts. There isn’t really an ideal time to invest in the stock market If you are waiting for one. so start investing now and make a fortune. our services are free.