A report by Motilal Oswal noted that Indian stocks have outperformed the US market, with $100 companies investing in India in 1990 grew to $By November 2024, there will be 9,500, while the same investment in the United States would only reach $8,400.
The report further highlights that the Indian stock market has delivered impressive returns, with investments growing nearly 95 times since 1990.
It also states that if an investor has invested $100 points in the Indian stock market in 1990, it will grow to $It will reach 9,500 by November 2024.
In contrast, compared to the US bar market, the same $100 invested in 1990 will grow to $8,400.
In contrast, the same $During the same period, the number of 100 people investing in the U.S. stock market will grow to $8,400, showing that the returns in the Indian market are higher than those in the US market.
Additionally, the report further compares the stock’s performance with other investment options such as gold and cash. The report pointed out that gold, traditionally regarded as a safe-haven asset, returned 32 times over the same period. This means $The current value of 100 invested in gold in 1990 $3,200, significantly less than the returns generated by stocks.
According to the report, the worst-performing asset was cash. Keep $100 cash and investing it in an instrument that provides a nominal interest rate will only allow it to grow to $1,100 in 34 years. This highlights the importance of investing in assets with higher growth potential.
The report also noted that it is well known that investments have a higher chance of reaching their full potential if they are given time to grow.
The problem arises when personal capital is invested because it is human nature to notice every little turmoil that drains personal capital. Initially, investors may be able to understand the situation, but when a bear market lasts for months or even years, portfolio profits and even capital begin to erode.
The report mentioned that for most investors, patience begins to disappear and fear begins to emerge at this time. greater than profit.
“We therefore believe that a key element of a healthy investment portfolio is having a long-term vision,” it said.
For the purpose of calculating capital gains tax, the long term is considered to be a holding period of one year for stocks and two years for debt instruments.
However, from an investment perspective, the report noted that one year is considered a very short period of time as volatility can be very high and investors may incur losses.
(All inputs are from ANI)