While investing in Sensex would have grown wealth only at a CAGR of about 12% in the last 5 years, investing Rs 1 lakh equally in select 10 stocks would have multiplied investor wealth by 17 times, according to a study.
While investing in Sensex would have grown wealth only at a CAGR of about 12% in the last 5 years, investing Rs 1 lakh equally in select 10 stocks would have multiplied investor wealth by 17 times, according to a study. Motilal Oswal’s 23rd Wealth Creation Study noted that Rs 1 lakh invested equally in 2013 in top 10 Fastest Wealth Creators would have grown to almost INR 1.7 million in 2018, delivering a return CAGR of 75%.
“Over the same period, Rs 1,00,000 invested in the Sensex would have grown to only Rs 1,75,000 (12% return CAGR),” said the study.
Which are these fastest stocks?
Interestingly, Indiabulls Ventures has emerged the Fastest Wealth Creator, with 2013-18 stock price multiplier of 30x, implying a 97% CAGR.
Also read: HDFC Bank emerges as biggest wealth creator in last 5 years ahead of RIL, TCS; here are top 5 names
Which are the other fastest stocks?
According to the study, After Indiabulls Ventures, Dalmia Bharat (CAGR of 81%), TVS Motor (80% CAGR), HEG (79% CAGR), Sterlite Technologies (75% CAGR), Bajaj Finance (73% CAGR), Motilal Oswal (67% CAGR), IIFL Holdings (64% CAGR), NBCC (64% CAGR) Eicher Motors (62% CAGR) are among the top 10 fastest stocks.
While Indiabulls Ventures is the fastest stock, private sector lender HDFC Bank shares have emerged as the biggest wealth creators for investors, ahead of Reliance Industries and TCS. In its study, Motilal Oswal noted that HDFC Bank has come out as the Biggest Wealth Creator for the first time ever. “After consistently hugging the second and third rank for the last 6 studies, HDFC Bank has finally broken through to emerge the biggest Wealth Creator over 2013-18,” Motilal Oswal’s 23rd Wealth Creation Study noted. HDFC Bank has created Rs 3,247 billion wealth in the last 5 years, while billionaire Mukesh Ambani-led Reliance Industries has created Rs 3,094 billion in the same period.