These Government Stocks Are Giving Exceptional Returns
Several government-listed companies in the stock market have delivered outstanding returns to investors over the past five years. Some of these well-known stocks have provided annual returns of up to 50%.
Why Trust Government Stocks?
Government jobs are popular due to their salary security and job stability. However, if you couldn't secure a government job, investing in government company stocks can also be a profitable option. Over time, these stocks can act like a pension plan, providing financial security in the long run.
Which Government Companies Are Giving the Best Returns?
In India, government stocks are generally considered safe and low-risk investments. According to a report by brokerage firm Angel One, some selected government companies have given compound annual growth rates (CAGR) of up to 80% over the past five years.
Top Government Stocks and Their 5-Year CAGR:
| Company Name | 5-Year CAGR |
|---|---|
| Rail Vikas Nigam Ltd. (RVNL) | 80% |
| Hindustan Aeronautics Ltd. (HAL) | 60% |
| Bharat Electronics Ltd. (BEL) | 51% |
| Bharat Dynamics Ltd. (BDL) | 48% |
| Oil India Ltd. | 41% |
| REC Ltd. | 41% |
| Bharat Heavy Electricals Ltd. (BHEL) | 40% |
| NHPC Ltd. | 30% |
| Power Grid Corporation | 26% |
| State Bank of India (SBI) | 20% |
(This data is up to October 2024. Due to recent market corrections, these stocks have fallen from their peak, making them available at attractive valuations.)
Is It the Right Time to Invest in Government Stocks?
According to market experts, government company stocks are currently trading at attractive valuations. However, since stock market investments carry risks, it is advisable to consult a certified investment advisor before investing.
(Disclaimer: This article is for informational purposes only. The provided information should not be considered investment advice. Please conduct proper research and seek professional guidance before investing.)
