Importance of Investments in Stocks

Historically shares have outperformed all the other investment instruments and given the maximum returns in the long run In the twenty-five year period of 1980-2005 while the other instruments have barely managed to generate returns at a rate higher than the inflation rate (7.10%), on an average shares have given returns of more than 17% in a year and that does not even take into account the dividend income from them. Were we to factor in the dividend income as well, the shares would have given even higher returns during the same period.
Slowly but surely the world's economic centre of gravity is shifting away from the established, wealthy economies of Europe, Japan, and North America to the emerging economies like China, India, and South East Asia.

China and India in particular are projected to become the two largest economies of the world in the next fifty years. China riding high on its manufacturing ability, has recorded tremendous economic growth in the recent past.
But as far as foreign investments are concerned, it is still looked at with suspicion, mainly for its political setup and the economic model. On the other hand India the world’s largest democracy, offers some very clear advantages.

India is one of the fastest-growing large economies in the world. With a population of over 1.3 billion, with huge human and natural resources, and with costs that are at the very low end of the global average, India represents economic opportunities on a massive scale.

India's institutional framework is well suited for the world economy. Corporate India has been performing well and this factor, coupled with strong macroeconomic fundamentals, growing industrial and service sectors, provides great potential for investment in the Indian economy.
Its legal framework which protects foreign investments is one of the best in the region. The economy offers an abundance of technical and managerial talent, with international experience.
And most importantly, India has a demographic advantage that will see its working age population continue to grow in the next couple of decades. The huge capital inflows into the country mirror the confidence of foreign investors in the Indian economy's ability to match this expectation.

India as compared to many other developing countries has been a star performer in recent years, both in terms of returns and attracting funds from overseas. Favorable demographics, wide opening of the economy and global competitiveness have put India on the economic radar of the global players.
Leading indicators and available information both suggest that the Indian economy is poised to build upon the gains in macroeconomic performance secured in the recent past. Robust strengthening of manufacturing activity, high corporate profitability, buoyant equity markets, robust merchandise exports and imports and lead indicators of service sector activity all point to a brightening of prospects for the Indian economy in the future.

Consequently, the return from the equity market has also been very handsome. Ethical Wealth institutions that are looking for investment opportunities beyond the Arabian Gulf can find Indian stock market a very good place to put their funds.
Over the last ten years Islamic finance has grown quite impressively. With the growth in Islamic finance the need for shariah compliant Wealth products have also increased very much.
However, Islamic capital markets in various Muslim countries are still quite underdeveloped. In these circumstances there have emerged a number of Indices developed by Dow Jones, FTSE and others to track shariah compliant stocks from the world over.

In India Muslims are second largest populations after Indonesia, Indian Muslims population estimated to be more than 150, millions. Inspite of this India is routinely ignored in the vast majority of the books articles on the subject of Islamic banking and or investments.
Dow Jones has Islamic index, FTSE of Britain has not only Islamic Index but also a full fledge Islamic bank, but unfortunately there is not a single Islamic Product or an Islamic benchmark in Indian investment environment.
Even more bizarre India is not covered and not included for any of their research work by any Islamic institution or bank. Although India is the big market for Islamic investments, and according to me no research work of any research institution could be complete without including India. Although India has a good Islamic structure which provides opportunity of riba (intrest) free investment and finance which gives us lots of benefit.

Shariah conscious domestic investors can also find Indian stock market a better place to invest. They all will find a large number of stocks consisting various sectors from IT, drugs and pharmaceuticals, automobile to core sectors like energy, cement, steel and mining etc. In fact the Islamic options available in India are wider and much better than the availability of the same in many Islamic countries.
Today business and investments have several different approaches, of which the Stock Exchanges offer an important one; provided we have the right information and guidance. We will be inviting people to invest any surplus money in equity shares as it is an extremely profitable option for wealth creation. India is a land of opportunity waiting to be explored and as the markets are near the bottom we think it’s the ideal time for new investors to select quality companies which will multiply their money many folds.