Indians’ Investments- Indian investors have earned more by investing in equity than returns from property and gold. Equity investment has given the highest returns in any 5 years in the last 25 years.
At the same time, Indian families’ wealth increased by about Rs 717 lakh crore in the last decade. About 11% of this is from equity income. A study by American financial services company Morgan Stanley revealed this information.
According to the report, the return from Indian equity (BSE Sensex) in the last 5 years, 10 years, 15 years, 20 years, and 25 years has been better than that from other asset classes like real estate, gold, 10-year treasury, and bank fixed deposits (FD).
According to the report, equity has given a 15% compounded annual pre-tax return (CAGR) in 25 years. At the same time, gold has increased by 11.1%, bank FD by 7.3% and the value of property or real estate in seven big cities of the country has risen by 7%.
Key points of Morgan Stanley’s report for Indians’ Investments
- Indian families earned about 84 lakh crore rupees from the stock market in 10 years, investing only 3%.
- Including the founders of new companies, Indian families earned 819 lakh crore rupees in 10 years.
- The share of income from equity shares was about 1 lakh crore rupees i.e. 20%. That is, the promoters also earned about 84 lakh crore rupees.
- Equity investors faced high volatility of 30.7% to get this return. While there was a fluctuation of 11.3% in gold and 1.6% in bank FD.
Indians’ investments in equity may soon reach 10%
Morgan Stanley economist Rhythm Desai said in the report, ‘We believe that Indian families are still investing less in equity. In the coming year, their equity investment can increase and cross the 10% mark, which is currently only 3%.’
Retail investors’ share increased by 8% in 10 years
According to the report, the share 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. According to this trend, the share of common Indians in the stock market has increased rapidly in recent years.
Market cap increased by a 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 reached its highest level of Rs 477 lakh crore on 27 September 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 crore
Due to increased transactions in the market, Security Transaction Tax (STT) collection in the country reached Rs 36 thousand crore between April and November. This is 97% of the budget target. From October, STT on future and option trading has been increased to 0.02% and 0.1%.
