How your Rs 10,000 becomes Rs 70 lakh

It’s an accepted fact that few investors can catch the peaks or bottoms in the currency markets. But assume a few traders did have the ability to get into the proper stock at the start of the bull operate that started in May 2003, and are securing with their shares still. What could have been their profits?

Contrary to popular belief, these investors could have made 700 instances or 70,000% on the original investment. Some Rs 10,000 committed to the biggest gainer in the current rally would have given you Rs 70 lakh. In contrast, Rs 10,000 committed to Sensex stocks will be worth only Rs 39 currently,000, an increase of just 3.9 times or 390%.


If you think that’s an exception, here are a few more statistics. A lot more than 550 companies or nearly 28% of the companies traded per day have out performed the Sensex feat of 390% returns since May ’03. Further, there are around 15 stocks that have delivered returns of over 100 times or 10,000% since the beginning of the bull run. Another 25 have delivered 50-99 instances or 5,000-9,999% returns.And for 241 companies, share prices have risen 10-49 times or 1,000-4,999%. So, your chances of making some a lot of money were in the number of 15-20%, taking into consideration some 2,000-odd stocks get traded every day. This average amount of stocks traded each day has increased because the start of the bull run when only 1 1,300-odd stocks were traded per day.There has been at least one star performer in almost every sector – from construction to computers, real estate to textiles, financials, engineering, electronics, breweries, sugar, steel, shipping – that has given returns above 100 times or 10,000% since the beginning of the bull run.
But, an essential element is that if you were one of the few fortunate enough to own these stocks, do you hold to the golden goose because the start of the current bull run? The answer is no mostly. Very few little retail investors have held their portfolios static in fact. A check through the various holdings in India Inc reveals that retail holdings possess actually declined since the beginning of the bull run.Equities are a long-term expense, but the moot query is identifying the scrip that would help you retire early.

Agreed, that it might be a difficult task but it’s not impossible. There is a fair chance that you could be sitting on a winner considering more than 550 companies have outperformed the Sensex. Remember, your hit rate is 28% considering the 2,000-odd stocks traded per day on an average. If you take into consideration just those stocks which were traded on each day through the year, your likelihood of striking the jackpot move additional up to around 38%.

This is unfortunate since it reveals that lots of small retail investors have not taken the advantage of such a stupendous rise in the equity market.For More Articles: Indian Stock Market,Stock Tips,Best Stock Tips






source : ET

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