Deprecated: urlencode(): Passing null to parameter #1 ($string) of type string is deprecated in /www/wwwroot/finresearchindia.com/index.php on line 49

Deprecated: sha1(): Passing null to parameter #1 ($string) of type string is deprecated in /www/wwwroot/finresearchindia.com/index.php on line 55
Benefits of Equities

Benefits of Equities

These are the Benefits of Equities

1. Highest Returns and Huge Wealth Creation

Equities have generated highest returns or risk adjusted returns among all assets. They have outperformed significantly in the long term when compared to all other investment options like Bank FDs, Real Estate, Gold.

2. Additional Income via Dividend

A company may transfer some part of its profits to its owners or shareholders in the form of dividend / bonus. For investor, dividend is an additional income stream apart from capital or price appreciation.

3. Make Money in all market conditions

Stocks are agile, there are profit strategies to make money in all market movement / directions (market up / down / sideways), you can make money on all directions, whereas in gold / real estate does not have option to benefit from falling markets

4. Highest Returns and Huge Wealth Creation

Equities have generated highest returns or risk adjusted returns among all assets. They have outperformed significantly in the long term when compared to all other investment options like Bank FDs, Real Estate, Gold.

5. Owner of a Big Business

Become a shareholder or get ownership of a big business. Benefit from the growth of the business and enjoy profits made in the business.

6. Improve Lifestyle and Beat Inflation

Inflation is the biggest obstacle to sustaining or improve life style and grow wealth. Equity Investments have given returns far beyond inflation rate in the long run. These high returns will help to sustain or improve life style.

7. Monitored and Regulated

The SEBI oversees capital markets in India. The framework safeguards the interests of all market participants especially investors. Frauds have reduced with the overview of SEBI.

8. Tax Advantage

Unlike other assets, Equities have special tax provisions which gives an edge over other asset class. Dividends and Long-Term Capital Gains are exempted to certain limit, when compared to other asset classes which are fully taxed. The holding period for long term taxation is also less for Equities.

9. Seamless Execution and Safety

Opening and maintenance of demat and trading account is seamless and very quick when compared to purchasing Physical Gold or Real Estate. The clarity of title and ownership is very transparent hence legal tussles are very less. Scope of Asset theft is also very less.

10. Instant Loan whenever needed

Instead of selling investment for the cash requirements, use equity investments as collateral and get quick loan. The process of getting loan against equity investments is very easy and is at a click of mouse.

11. Easy to cash out when needed

Equities are viewed as most liquid assets. Shares can be bought or sold easily and they can transferable. Encashing is very easy when compared with other assets like Gold or Real Estate.

Scroll to Top