Simplified Equity Investing

In Previous Blog I have explained one side of Equity Investing, here’s another side of Equity Investing. Here’s is the returns of well-known companies (or Products) over a period of last 10 years (01 st Jan 2008 to 31 st Dec 2017), it includes effect of year 2008 crash . Company Name Absolute Returns CAGR over 10 Years 1. Reliance Industries (Petrochemical) 27.88% 2.49% 2. State Bank of India (Banking) 30.54% 2.70% 3. Videocon (Consumer Electronics) -97.62% -31.20% 4. Bharti Airtel (Telecom) 6.46% 0.63% 5. ICICI Bank (Banking) 40.13% 3.43% 6. Reliance Communication (Telecom) -95.15% -26.11% 7. Larsen & Toubro (Construction) 35.58% 3.09% Fixed Deposit 115.89% 8.00%                    ...

What is Equity Investing: Investment in equity shares of companies. Why Equity Investing in India? Equity is the best asset class in the world in terms of return over a period of time .   India is one of fastest growing economy in the world.   Unorganised sectors converting into organised sectors after big moves by Indian Government like: Demonetisation, GST, RERA.   Currently Long Term Capital Gains (More than 1 Year) on Equities are exempt in India. Myth about FD Returns: We all thinks that we are earning interest on FD’s but the real fact is these Interest rates are just Inflation Compensation , so you are earning nothing. Now comes to equity performance over a period of time: We all have fear of year 2008 crash and why not? Even our leading bank (HDFC bank) crashed by 50 odd percentage. But if we see returns over a period of time from equity, it is much better than Fixed Deposits returns. Here’s is the returns of well-known comp...