By Deven Choksey
It is said that next 10 years are going to be GOLDEN years of India’s economy and market wealth. Let me reflect on those opportunities as I see it, which will shine brightly for investors.
Between last Diwali in November 2023 and this one, India’s market capitalization has grown to over $5 trillion, and the GDP grew to $4 trillion. Over the past two years, from Samvat 2079 – 2080 (2022 to 2024), India’s market capitalization surged by approximately Rs 10 lakh crores ($1.2 trillion), showcasing a growth rate of 30%. This impressive increase reflects the buoyancy of our collective financial prospects.
These indicators highlight the potential for both domestic and international investors to seize opportunities in the market.
As we embrace the festive spirit, let’s explore the invaluable gift we can offer ourselves and our families this Diwali: investing in India’s flourishing sectors, which are poised for remarkable growth.
The Value of Long-Term Investing
This Diwali, consider the vast opportunities available in the market. By smartly allocating financial investments to promising sectors, you can see your investments grow dramatically over the next decade.
For example, if you invest Rs 20,000 each month in equity with a target 30% compound annual growth rate (CAGR) over next 10 years, you would end up investing about Rs 24,00,000 (Rs 2,40,000 annually) which will grow your wealth to Rs 1.46 Crores.
Let me expand on the list of opportunities –
Why We are Bullish on Equity Investments
In the past decade, Indian stock markets have shown strong growth, since 2014, market capitalization has increased significantly alongside steady GDP growth. By 2035, India’s GDP is projected to grow to around $7 trillion and the market capitalisation to grow to about $ 12 trillion from $5 trillion currently. India’s market and GDP are expected to rise in synergy, creating more wealth for investors.
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Current Market Landscape
Market Size: The combined market capitalization of the Indian stock market is around ₹446 Lakh Crores or $5 trillion as on September, 2024.
Investment Avenues: Portfolio management services (PMS) and alternative investment funds (AIFs) have experienced impressive growth,
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