How to become a crorepati: This stock turned Rs 1 lakh into Rs 1.78 crore

How to become a crorepati: When it comes to investing in the stock market, share market experts always advise investors to take a long-term position, especially for small investors. There is a large number of stock market investors who invest in stocks as part of their diversification strategy for their portfolio. Hence, market experts are of the opinion that in the long-term perspective a stock investment would give at least 12 per cent annual return if the investment is for more than 10 years. 

The stock that has done wonderfully well is none other than Havells India or HIL. This share has given around 17,868 per cent return from October 4th, 2004 to October 3rd, 2019. On 4th October 2004, Havells India closed at Rs 3.94 on that date, but today, its share price is trading at around Rs 704.

See Zee Business Live TV streaming below:

Taking cue from this rise in HIL share price, if an investor (who wants to  become crorepati in long-term future) had invested Rs 1 lakh in this stock, his or her Rs 1 lakh would have become Rs 1,78, 68,020.3, a jump that every stock market investor wants in his or her portfolio but very rarely earn.

Speaking on the stock market returns Kartik Jhaveri, Manager — Wealth Management at Transcend Consultants said, "In an equity investment, small investors who invest in equities to diversify their portfolio and maximise their investments, the long-term position is always advisable. Investment in cash segment can help them fetch at least 12 per cent returns if the investment is for more than 10 years."

On big returns Havells India shares have given to investors, Prakash Pandey, MD & CEO at Plutus Advisors said, "While picking stocks, one needs to look at the fundamentals — balance-sheet, order book, future outlook and future of the industry it belongs to, technicals, support and exponential moving average." 

So, if you want to pick a stock that can transform your financial life in the current market, it is ideas like this that can help you get such big returns, provided you invest for the long term.