Benefits of Long Term Investment

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Long term investment is better for big profits, shares of these companies gave returns up to 1435 times in 20 years.

If you invest for a long time in the stocks of fundamentally strong companies, then this investment can prove to be a better way of wealth creation for you.

Long Term Investment in Stock Market

Many times people get attracted towards intra-day trading to make quick money in the stock market, but there is often a risk of huge losses instead of big profits. But if you choose the right stock and invest in it for a long time and allow your capital to grow along with the growth of that company, then your investment can prove to be a better way of wealth creation. You can also understand this strategy from the fact that there are many stocks listed on the Indian Stock Exchange, which have given huge returns to the investors in the last 20 years. For example, the stock of Eicher Motors has given a return of 1435.62 times for 20 years.

Eicher Motors

  • Eicher Motors has given huge returns to investors in the last 20 years. On August 31, 2001, its price was Rs 1.77 per share, which increased in 20 years and today closed at Rs 2541.05 per share on Monday, August 23. Thus, it gave a return of 1,43,463 per cent to the investors in 20 years i.e. their capital increased by 1435.62 times.
  • Eicher Motors is an Indian multinational vehicle company that manufactures motorcycles and commercial vehicles. Its headquarter is located in New Delhi and it is the parent company of Royal Enfield. Apart from motorcycles, Eicher also runs a joint company with Volvo Trucks of Sweden.

Asian Paints

  • Asian Paints has given huge returns to investors in the last 20 years. On August 31, 2001, its price was Rs 17.63 per share, which increased in 20 years and today closed at Rs 3077 per share on Monday, August 23. Thus, it gave investors a return of 17,354 per cent in 20 years i.e. their capital increased by 174.53 times.
  • Asian Paints is an Indian multinational paint company headquartered in Mumbai. The company manufactures, sells and distributes products related to paints, coatings, home decoration. It is the holding company of Berger International. Asian Paints manufactures in 15 countries of the world including India.

MRF

  • The shares of MRF have also given good profits in the last 20 years. Its one share was Rs 480.9 on 31 August 2001, which has increased to Rs 76,000 per share on 23 August 2021. In this way, the investment made in this stock has been giving a return of 158.03 times in 20 years.
  • MRF (Madras Rubber Factory) is an Indian multinational tire manufacturing company. It is the sixth largest tire manufacturer in the world and is headquartered in Chennai. The company manufactures tyres, treads, tubes and conveyor belts, paints and toys.

Infosys

  • In the last 20 years, Infosys has given huge returns to investors. Its share price was Rs 55.29 on 31 August 2001, which closed at Rs 1739.60 on 23 August 2021. Accordingly, it has given a return of 3047 percent or 31.46 times to investors in 20 years.
  • Infosys is an Indian multinational IT company providing business consulting, IT and outsourcing services. It is the second largest IT company in the country after TCS and the 602nd largest public company in the world according to the Forbes 2020 ranking.

Highest return on long term investment in equities

If you invest your capital in a good stock for 20 years, then you cannot get better returns on investment anywhere else. Eicher Motors has given investors about 1435 times returns in 20 years. The very first step to get better returns is to choose a better stock in which to stay invested for a long time. Before deciding which company to invest in would be the right decision, please consult your advisor.

Note:

The information given here is based on the stock price data available on the NSE website. This information is given only to make the investors aware about the benefits of long term investment. Before making any decision related to investing in the stock market, you must definitely contact your investment advisor.


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