Stock SIP: TCS vs Reliance, who wins? Read to find out!
Uncovering the Superior Blue-Chip Stock for Your SIP
Systematic Investment Plans (SIPs) have long been a favoured investment approach among Indian investors, offering a disciplined way to grow wealth over time. In this article, we will delve into the fascinating world of SIPs by pitting two conglomerates against each other: Tata Consultancy Services (TCS) and Reliance Industries. Through meticulous calculations and analysis of the past five years, we aim to uncover which company's stock would have been the better choice for a SIP investor.
The SIP Race
Over the past half-decade, we tracked the performance of TCS and Reliance stocks as part of a SIP investment strategy. We considered the scenario where an investor diligently purchased five stocks of each company on a monthly basis. We meticulously crunched the numbers and assessed the total returns from both TCS and Reliance SIPs over this five-year period.
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TCS SIP details
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A
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No of Stocks to buy each month
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5
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B
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Average price after 5 years of SIP
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2,744.91
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C
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Qty of shares after 5 years of SIP
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310
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(BxC)
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Amount Invested over the time (Rs)
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8,50,921.99
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D
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Avg Maket price (October 18,2023)
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3494.625
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(CxD)
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Investment value (October 18,2023)
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10,83,333.75
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|
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Profit in %
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27.31%
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Reliance SIP details
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A
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No of Stocks to buy each month
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5
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B
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Average price after 5 years of SIP
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1,960.14
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|
C
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Qty of shares after 5 years of SIP
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310
|
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(BxC)
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Amount Invested over the time (Rs)
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6,07,642.17
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|
D
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Avg Maket price (October 18,2023)
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2339.625
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(CxD)
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Investment value (October 18,2023)
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7,25,283.75
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|
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Profit in %
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19.36%
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After crunching the numbers and analysing the data, TCS has clearly triumphed over Reliance in the SIP race by massive. The TCS SIP managed to outperform the Infosys SIP by a notable 7.95 % over the five-year period.
Disclaimer: The article is for informational purposes only and not an investment advice.
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