If I have invested 3 lakhs in stock market today what will be the returns in 3 years ?

Long term investment in stock market

 The common question we could have searched in google when we all started our investing journey in the Indian stock market is " What will be the returns if I had invested an amount in stock market? ". The question does not have a specific answer. But one thing we can assure is if we were invested in good and consistent stocks for a specific period (let me take 3 years as an example in this article),  then the returns will be beyond our expectations. The previous history has proven that. This article is going to make a detailed study on some fundamentally strong stocks and what returns would they have generated if we had invested for 3 years. Before that please check my previous article on what returns you would have gained as dividends if you stay invested in the share market for long-term in this link.

Let's choose the first stock. it is my favorite stock and will be in the portfolio of almost everyone reading this article. It's TATA MOTORS. 

The picture shows the candle stick chart of Tata Motors for 3 years. In July 2019, the share prize of Tata Motors was Rs 180 and the share price extended to Rs. 514 in Nov 2021. Almost 3 times the invested amount. If I had invested 3 Lakhs in Tata Motors in July 2019, It would have ranged to 9 Lakhs in Nov 2021. On further study we can see that if we considered the dip and re-balanced our portfolio, the price of Tata motors went to Rs 200 and then dipped to Rs 70 then extended to Rs 514. The total profit we could acquired by re balancing according to the market conditions will be 20 Lakhs, a return 666 percent over three years. You can check the table below for more information.

 The next stock I am considering is HDFC Bank Ltd, a banking company incorporated in the year 1994.

From the chart of HDFC Bank Ltd, It can be seen that the share price of HDFC ranged from Rs 1300 to Rs 1700 over 3 years. If we invested an amount of  3 Lakh before three years, then the profit gained after 3 years will be Rs 92000, a return of 30% over 3 years. On considering the market condition we may wait for the dip in March 2020 and the price fall to 800. On buying at a price 800 and selling at 1700 will give a profit of Rs 3,37,500 over 3 years which is return of 112 percent.

The last example I have selected for this section is Reliance Industries, don't have to introduce the name here.

On July 2019, the share price of Reliance is Rs 1300 and the share price of reliance raised to Rs 2800 in May 2022. If we had invested 3 Lakhs on Reliance share in 2019 then the profit generated will be Rs 3,45,000, a return of 115 percent. If the portfolio is adjusted regularly then the profit generated will be much higher than this value. The detailed information is included below.

If the portfolio is adjusted according to the market conditions then the total profit generated over 3 years will be Rs 6,70, 412 which will be a return of 223 percent. 

From all the above 3 stocks the basic idea we could adapt is that share market will give tremendous return on long term investment. In all the cases above we can see that, If we spend our time to study the share price regularly then the return will be even higher. It could be understood from the values given above. Believe that this information will be helpful and exciting for you. Please check my previous article on stock market trends.

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