At the start, I would like to reiterate,
The stock Market is a way to build wealth and not to make a quick buck
Unknown
Having said that, stocks that are bought at a low price give amazing returns when
- The market is in a bull-run
- Exceptional performance by the stock in terms of quarterly results
- Presence of Bubble in the market
So, taking the question:
Capital Invested → ₹200
Money Made → ₹1000
Return → 400%
Duration → 3 months
This can be achieved by
- Investing in a penny stock (which fluctuates wildly)
- Increasing the capital (from ₹200 to ₹1000–₹10k)
- Increasing the horizon(from 3months to 9–15months)
The last option is the safest one which will assure capital is secured and money return is made
An Example: Bajaj Hindusthan Sugar (penny stock)
This stock rose from ₹4.5 to ₹23.5 (~400% Return) in July 2021
Despite this, the stock has corrected back to ~₹13.7 level (Oct 2021). This shows that sustaining high returns is not possible without the company being sound or the horizon for compounding to take place.
In the end, only one quote comes to mind
Hope this helps
Please Feel Free to share and Contribute if you like our work.
God Bless!
Invest in IRCTC😛
hahaha….good one!! 🙂