Investing in quality companies has historically yielded exceptional returns. Here’s a snapshot of potential gains had you invested *₹10 lakh in some of India’s top companies since their inception:
Titan (1984)
– Value Today:Rs 71 crore
– CAGR: ~28%
Pidilite (1979)
– Value Today: Rs 98 crore
– CAGR: ~23%
Asian Paints (1942)
– Value Today:Rs 5400 crore
– CAGR: ~23%
HUL (1933)
– Value Today: Rs 3800 crore
– CAGR:~20%
Maruti Suzuki (1981)
– Value Today: Rs 120 crore
– CAGR:~24%
Hero MotoCorp (1984)
– Value Today: Rs 450 crore
– CAGR: ~27%
Lessons for Mutual Fund Investors
These returns exemplify the power of investing in quality companies with strong management and market positions. Similar principles apply to mutual funds:
1. Quality Management: Opt for funds with credible fund managers and proven track records.
2. Long-term Holding: Patience is essential. Ride out market fluctuations for significant gains over time.
3. Accept Volatility: Understand that market fluctuations are part of the journey but focus on long-term growth potential.
4. Diversified Portfolio:Choose funds that invest in a range of sectors and companies, reflecting the strength seen in these iconic firms.
By adhering to these principles, mutual fund investments can similarly harness the power of quality and patience to achieve substantial long-term growth.
Excited to learn from the insights of @IrshadMushtag, writer, investor, entrepreneur & Founder of MI Securities! Connect for valuable financial advice at [email protected]