Sunday, June 11, 2023

What are the benefits of investing in the stock market?


Stock Market investments offer you benefits like easy liquidity, flexibility of amounts invested/disinvested, reasonable returns and a regulatory framework to safeguard your rights. Shares are the most popular form of stock market investments due to their higher potential for capital growth.

In the long run it is empirically found that investment in equities gives maximum return.

PRESENT VALUE OF RS 1 LAKH (INVESTED IN 1992) 

Mode of Investment Value of Rs1 Lakh Remarks 

Bank Fixed Deposit Rs. 3,79,535 Calculated on the basis of prevailing average different bank rates in 1992-97 (11 per cent), in 1997-2002 (11.5 per cent) and in 2002- 08 (5.5 per cent) 

SBI-MF Magnum Rs. 4,89,300 Mutual Fund Scheme started in 1993 Tax Gain (1993) 

Gold Rs. 2,61,000 In January 1992, the price of gold was Rs.4,200 per 10 gram and in January 2008 the price of gold is Rs.11,000 per 10 gram 

Property Rs. 5,00,000 In 1992, the rate of real to Rs.7,14,000 estate in Nariman Point Mumbai was Rs.7,000 per sqft and in January 2008 the rate of same property was Rs.35,000 to 50,000 per sqft 

Sensex Rs.10,30,346 In January 15, 1992 Sensex was at 2020 and on January 07, 2008 Sensex was at 20813 

(Values are calculated on the basis of prevalent average rate in case of property and gold while value for the mutual funds is calculated on the basis of returns/dividend given by the bank)

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