How To Invest Rs 10000 In India for High Returns for Beginners: Investing is the only way to consistently grow your hard-earned money. Gone are the days when people kept their fortune buried below their land. Rising inflation and increased consumers have created a need for investing today.
However, when we look around, very few people know how to invest their money intelligently. Most are not even aware of the different investment options available to them in India. Today, we are going to discuss how to invest Rs 10000 in India for maximum returns. Keep reading.
There are multiple investment options available in India to invest Rs 10,000 or more to get moderate to high returns. Here are a few of the popular investment options and the expected average annual returns in India:
- Savings: 3.5–4% per year
- Fixed Deposit: 6–8% per year
- Bonds: 7.5-10% per year
- Gold: 9-11% per year
- Mutual funds: 12–18% per year
- Stock Market: 15–25% per year
“How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case.” – Robert G. Allen
Besides these, a few other investment options are also available in India such as Real Estate, Commodities, Metals, Cryptocurrencies, etc. However, apart from cryptocurrencies, all these other options might not be feasible for an investment of Rs 10,000 in India.
Now, let’s move to the answer to the central question of this post i.e. how to Invest Rs 10,000 In India for high returns? Among all the options mentioned above, investment in the stock market is the one that has consistently outperformed all the other investment options over a long duration. Hence, the Stock market is the best option available for an investment of Rs 10,000 to get maximum returns if you’re ready to invest smartly.
Here is a graphical comparison of returns on the Gold vs Nifty Index for the last 10 years.
(Source: ET Money)
Now. let us analyze the Indian stock market and find out how much return you might have got, if you had invested Rs 10,000 in a few popular companies, five years ago in terms of their absolute returns.
COMPANY | Industry | MARKET CAP (RS CR) | 5YR RETURNS (%) |
---|---|---|---|
Adani Transmission Ltd. | Power Transmission | 1,14,600 | 520.71 |
Adani Green Energy Ltd. | Power Generation | 1,50,578 | 2919.05 |
Deepak Nitrite Ltd. | Chemicals | 25,738 | 636 |
Adani Enterprises Ltd. | Diversified | 2,19,324 | 1364.4 |
Adani Total Gas Ltd. | Gas Transmission | 1,03,899 | 1150 |
Bajaj Finance Ltd. | Finance - NBFC | 3,80,233 | 236.12 |
Coforge Ltd. | IT - Software | 25,557 | 294.8 |
Balkrishna Industries Ltd. | Tyres & Allied | 40,255 | 67.28 |
Gujarat Gas Ltd. | Gas Transmission | 32,202 | 175.84 |
Jindal Steel & Power Ltd. | Steel-Sponge Iron-Pig Iron | 59,430 | 126.26 |
Jubilant FoodWorks Ltd. | Consumer Food | 29,458 | 74.37 |
Tata Consumer Products Ltd. | FMCG | 70,925 | 163.67 |
Info Edge (India) Ltd. | ITeS | 48,732 | 211.22 |
SRF Ltd. | Diversified | 75,285 | 428.78 |
Indiamart Intermesh Ltd. | e-Commerce | 16,422 | 312.2 |
Astral Ltd. | Plastic Products | 38,929 | 231.14 |
Muthoot Finance Ltd. | Finance - NBFC | 40,947 | 130.51 |
Avenue Supermarts Ltd. | Retailing | 2,27,981 | 139.37 |
Trent Ltd. | Retailing | 48,589 | 305.86 |
JSW Steel Ltd. | Steel & Iron Products | 1,75,321 | 123.82 |
Atul Ltd. | Chemicals | 20,264 | 140.01 |
Relaxo Footwears Ltd. | Footwear | 20,994 | 146.29 |
Reliance Industries Ltd. | Diversified | 16,37,533 | 152.66 |
Titan Company Ltd. | Diamond & Jewellery | 2,34,411 | 172.89 |
JK Cement Ltd. | Cement & Construction Materials | 23,102 | 199.03 |
Tube Investments of India Ltd. | Diversified | 50,009 | 1051.52 |
Adani Power Ltd. | Power Generation-Distribution | 86,723 | 812.17 |
Also Read:
- Case Study: How 100 shares of WIPRO grew to be over Rs 3.28 crores in 27 years?
- 10 Best Blue Chip Companies in India that You Should Know.
- How to Earn Rs 13,08,672 From Just One Stock?
Table of Contents
How To Invest Rs 10000 In Indian Stock Market?
Here are a few tips on how to invest Rs 10000 in India in stocks to get maximum returns:
1) Do the Research Carefully
This is a basic but most important tip that any stock market investor should know. If you don’t want to depend on your luck, research the company before investing. Further, invest in the company, not the share price. If the company is doing great, the stock will also perform well. Research the company carefully before buying stock.
Understand the company first. Learn about its product, services, business model, competitors, industry, founders, management team, competitive advantage, and more. In short, study the company’s fundamentals of the company before investing.
If you want to read more about how to select a stock, you can read more here: How To Select A Stock To Invest In Indian Stock Market For Consistent Returns?
2) Prefer Growth Stocks over Value or Dividend Stocks
Growth stocks are those companies that grow at a faster pace in terms of revenue and profit, compared to their competitors or Industry average. Although growth stocks might be riskier compared to value or dividend stocks as the latter ones are reputable companies and give regular dividends, however, returns from dividends are lower.
On the other hand, though the growth stocks don’t give any dividend to their shareholders, the capital appreciation in terms of share price rise can be higher here as growth stocks re-invest all their profits back into the company which helps them to grow faster.
3) Invest in just One or Two stock
Everywhere there is a hullabaloo about diversification while investing- ‘Do not put all your eggs in the same basket’. However, in reality, the concept is different if we expect maximum returns from small investments. Do not diversify your portfolio when you are investing just Rs 10,000. Instead, invest in just one or two great stocks max.
Diversification is used when you are investing a huge amount of money like Rs One lakh or above. It’s the big bets which can help you to get great returns with small funds. Diversification kills the profit when the investment amount is small.
Let’s understand this with an example. Suppose, you invested Rs 10,000 in a good stock. The stock gave a return of +50% percent in a year. Then, the total return amount will be Rs 15,000.
Let us assume another scenario in which you invested Rs 10,000 in 3 stocks. The return on the stocks after a year is +10%, +50%, and +15%. The overall return amount will be Rs 12,500 (+25%). All three stocks cannot give similar returns and one of them might be potentially the strongest. If only you had invested in the strongest among the three, you would have been able to get a double return (from 25% to 50%) on your investment.
In addition, there is not much to lose for small investments like Rs 10,000. People diversify their portfolios so that they won’t lose lakhs of rupees (and go bankrupt) if their investment strategies failed. However, if you are planning to invest just Rs 10,000; then the reason for investment must be that you have extra savings and you want to get high returns on the investment. In such cases, go for a big sure shot.
Like Mohnish Pabrai, the legendary stock market investor and author of the book “The Dhandho Investor” used to say, “Few bets, Big bets, Infrequent bets”
Quick Note: If you do not have a big risk appetite, then ignore this tip and diversify.
4) Invest in Known Brands
You don’t need to find an unknown hidden stock to get multi-bagger returns. There are a number of common well-known stocks (Eicher Motors, Symphony, Page Industries, MRF, etc) that have given multiple times returns in the past and will continue doing so in the future.
Look for a growing company around you. Study if they are listed on the stock exchange. Learn the fundamentals of those stocks. And if they are fundamentally healthy, invest in the stocks. This is an effective way to find multi-bagger stocks for common investors. This concept was discussed by the legendary fund manager Peter Lynch in his best-selling book ‘ONE UP ON WALL STREET’.
5) Invest in Mid-cap Companies
These companies have the potential to become large-cap companies in the long term frame. They have a high growth rate compared to the large caps which have already reached saturation and the chances of large caps giving multiple-time returns are highly unlikely. In addition, Mid-cap companies have good capital to stay out of debt and live a long life. A good growing mid-cap stock can easily become a multi-bagger.
A few people may advise investing in penny stocks or small-cap stocks for getting high returns. However, for the small caps, the chances of the company growing broke are also high. Most small-cap companies are not able to sustain in harsh economic conditions which is sure to occur once or twice in the long-term period. Therefore, investing in small-cap companies has more risk than reward.
6) How to double 10000 rupees?
Many people have this thought of judging investment results in terms of how much time it takes to double their money. While it is a simplified thinking approach, it is also a dangerous one. One method to know, how the money will double is to follow the rule of 72. Simply divide the number by the return you expect to earn. For instance, it will take approx. 7.2 years to double your money if you earn an interest of 10% every year.
Closing Thoughts
In this post, we discussed How to invest Rs 10000 in India for maximum returns. Although Rs 10,000 is not a very huge amount, however, the returns can be huge if invested in the right company. Every day we see thousands of cases where investors with a small investment amount are able to make huge money from the stock market by being invested for a long time. Therefore, buy right and sit tight!
That’s all for this post. Do comment below on what you think about the strategies discussed in this post on how to invest Rs 10,000 in India in the stock market. Further, if you’ve got any doubts or queries, feel free to post them below. We will be happy to help you out. Have a great day and Happy Investing.
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Kritesh (Tweet here) is the Founder & CEO of Trade Brains & FinGrad. He is an NSE Certified Equity Fundamental Analyst with +7 Years of Experience in Share Market Investing. Kritesh frequently writes about Share Market Investing and IPOs and publishes his personal insights on the market.
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Really superb, there is no words to say something about you sir,you have done good job thanku very much
You are welcome.
Your article is very useful for me. Thanks for that.
You are welcome Bhaskar 🙂
I really loved you article
Hey
your article is really very informative and thanks for sharing such a nice content
Wonderfully written article..could you suggest few stocks to buy now? I am looking for both short term and long term investment.
Thank you Mahek. I have written a similar post here which you may find useful: https://www.tradebrains.in/best-stocks-for-long-term-investment-in-india/
Hi Sir,
I got very useful information from your blogs. I am new in Stock market. so it helps me a lot.
Could you please explain how we can check company’s fundamental & which elements you consider as fundamental.. like revenue, profit, expense.
as I investigate some company’s on NSB website and all company’s have increasing profit before last year. I am very confused.
Please guide me about elements of fundamental and how to choose grate stock.
Hi Raj. Thanks for commenting. For fundamental analysis of stocks, I have written a post which you can find useful: https://www.tradebrains.in/how-to-select-a-stock-to-invest-in-indian-stock-market/
Thanks sirji…:)
At such a young age, you are blogging like a seasoned player. Keep the good work on…
Thank you Pawan. Really appreciate it.
Nice sir. It’s called lambi race ka chhoda.
really very usefull ,gained lot of information,keep doing good things.:)
Sir, very useful really. Pls suggest some stocks for systematic investments for 10 years. Pls send .
Hi Gokul. Thanks for comment. As you are investing is long term, I will suggest to invest on some fundamentally strong large cap companies. Also do diversify your protfolio with stocks from different sectors. Besides, I do not give stock recommendations. This blog is only for educational purpose.
HI SIR
ITS VERY USEFUL DETAILS ABOUT NSE & BSE.
Please guide me about elements of fundamental and how to choose grate stock.
Hi Vishu. Thanks for the comment. Appreciate it. If you have any doubts, feel free to mail me at kritesh@tradebrains.in I will be glad to help you out.
Hey,
Thanks for a detailed blog, it is really informative. Hope ill apply the knowledge for good. Keep it up.
You are welcome Raj.
Sir, I am new and want to invest in stock. I want to know what is the difference among intraday, t5 etc
Intraday trading refers to the trading system where you have to square-off your trade on the same day.Squaring off the trade means that you have to do the buy and sell or sell and buy transaction on the same day before the market close. You can read more here.
Very informative blog for.. very new investor.. thanx sir
You are welcome.
Tell me sir from where we collect information about company or their fundamental?
You can use financial websites like Screener or moneycontrol.
Really very useful for beginners like me
Glad it’s useful for you.
these principles sound utopian. and examples afterthoughts…tell me which stocks look like multi bagger today and are still cheap to buy
Hi megha. Thanks for your comment. I appreciate it. Further, I donot give personal stock recommendation. There are a number of stocks in the market with huge potential. Do the research and you’ll find it. I hope the article is useful to you. REGARDS.
Hi i like ur explaination about stock market its realy helpful ..i want to know more 7086304622 my watsap numbr can u snd me the link of al post n ur views
Hi. your article did good to my understanding.
with regards i would like to know if investing the said amount in Bitcoins or stocks would be more profitable, let aside the security.
thank you.
Bitcoins and cryptocurrencies are giving high returns these days. However, they also have a high risk and volatility.
I am really thankful for your blog….As i am just started investing by Rs.5k using zerodha.
Hello, I am a new investor and have been educating myself. I have also planned to initially invest 10k using Zerotha. I see your comment is 2 years old. Can you share more about your experience, up til now?
Thank you very much for this detailed and helpful post, this helped me a lot, actually, i was just searching about 10K INR investment options and stumbled upon here, and it worth my time, 🙂 🙂 🙂
Glad it was helpful. Cheers.
Hello kritesh, what about investing in Mutual funds in a long terms
Mutual funds are also great. Many funds are constantly beating the index.
Thanks for the valuable information for tge begineer in trading.
Realky appreciated.
Mea while .I want to invest litle like 10k amount every montth.
so will i get good returns on midcap.onthly as well.
please suggest.
Hi Rakesh. Good to hear that you are planning to invest regularly. If you need help regarding selecting stocks, I have written a detailed post which you can find here: https://www.tradebrains.in/how-to-select-a-stock-to-invest-in-indian-stock-market/ I hope it helps. Cheers.
I’m 18 year old and want to invest in shares, are mid caps best for me
Hi Shamik. Glad that you are planning to invest in stocks at such a young age. Mid-caps have huge potential to become large caps in future and they have a lower risk compared to small caps. That’s why it’s a good option. I hope it helps. Cheers.
hi, can the stock purchased in the year 2018 be sold after end number of years? (keeping in mind the growth of the company/other considerable things)
Which is the best stock to invest in may 2018? I am a beginner and this is the first time I am investing in stock market and i want to invest 10000 rupees for good returns . Please help me to buy a good stock.
Hi Hrishi. For beginners- I would recommend investing in blue-chip stocks. They are safe and easy to investigate. I hope it helps. #HappyInvesting.
hi kritesh abhishek hru?
let me know about long term investing? and groth MF?
Hi Dhiryasheel. You can learn more about long-term investment and growth mutual funds in my online course here– https://courses.tradebrains.in/p/investing-in-mutual-funds Coincidently, I haven’t covered much about the growth investing on my blogs as they generally cover stock investing. I’ll try to write a post on growth and dividend mf investing soon. I hope it helps. Cheers!!
Hi,
I want to open a Dmat a/c.What are the requirement documents.I am living in New Zealand.How much commission for buying or selling a shares
Thanks and regards
Rajendra
Very useful article thank you ❤️
Let’s understand this with an example. Suppose, you invested Rs 10,000 in a good stock. The stock gave a return of +50% percent in a year. Then, the total return amount will be Rs 15,000.
Now, let us assume another scenario in which you invested Rs 10,000 in 3 stocks. The return on the stocks after a year are +10%, +50%, and +15%. The overall return amount will be Rs 12,500 (+25%). All the three stocks cannot give similar returns and one of them might be potentially strongest. If only you had invested in the strongest among the three, you would have been able to get a double return (from 25% to 50%) on your investment.
My question is – 10,000rs give 50% profit 5,000
Aapne Jo 12,500 ka profit dikhaya ha vo 30,000rs ka hai na ki 10,000rs ka
50% of 10,000rs is 5,000
10%of 10,000rs is 1000
15%of 10,000rs is 1,500
To aapne 12,500kaha see leker AA Gaye hai
if you are investing in 3 stocks instead of one the capital will also be divided in 3. so it wont be 50%,10% and 15% on 10,000 but 50%, 10% and 15% on 3,333/-
HI,
I’m a working person and got very much interest in stocks. I would like to start with penny stocks with 500rs as investment. I’m learning as much as i can daily theoretically but still I’m not sure how to start invest practically. Can you help me with penny stocks in details and how to start it.
Sir I read this how to invest Rs 10000 and I liked it very much, but sir I lost my 4 lakh rupees in India stock market by trading in intraday, and in index option through Advisor s help , now I am not trading, please sir suggest me how to recover my losses in a less risky way and confidently.
Nice for students
Very useful information u have given for beginners..
Thanks allot.
Can I get your personal number? If u don’t mind
You have covered only 4 options for Rs.10,000, saying “Besides, other investment options available in India are Real estates, gold, silver, forex, cryptocurrencies, commodities like petroleum etc. However, for an investment of Rs 10,000- these are little out of scope.”
Have you written anything recently on investing (say, 25 lacs) in forex e.g. dollars for the long term (10 years)? Or, can you direct me to relevant sources?
I am sure, over a 10-year period, Nifty will easily out-perform INR/USD but by how much (historically, say, over 2010 to 2020)? Where can I find a single graph comparing Nifty (or Sensex) returns vs Forex (e.g. USD) returns?
Beautiful article, really give insights and increase our knowledge how one can invest with small amount in the beginning, specially in Indian market.
sir at present im having 10000 rs. i want to buy blue chips. is it comes under mid- cap?? n for blue chip which company will be better!!! plese help
People invest not unnecessarily. They always invest on the condition of some return. If this will not happen then why anyone should earn money and give it to others for their purpose through the bank.
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thanks for sharing such a great article with us please keep sharing such creative information with us
Thank you so much for such an excellent article I really appreciate you.