InvestorQ : why should we invest in equity
Shailesh jain made post

why should we invest in equity

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shivangi Arora answered.
1 year ago

Trading with sure plan and knowledge in Equity stocks can prove a success or turn a useless idea for you.
I invest in the equity market for many years by now. I learned much in my entire tenure of investment. It is considered as the best way to earn higher returns through equities in the long run. In fact, it has been tested and proven that if you hold equities for a period of more than 8 years, then the probability of making negative returns is close to zero.
Equity stock is ranked more than short term and long term investment when it comes to growth potential.
If you an investor with an idea of initially putting some of your money in stocks you can adjust the number of stocks. You can invest that suits your time frame for investing, risk, tolerance, and financial situation.

I have tried some pharma companies to invest in equity stocks. You can check Dishman Carbogen Amcis Ltd. and Aurobindo Pharma Ltd.

When it comes to investment and growth never skip to invest your hard earned money in other instruments too, like Equity mutual fund.
Equity mutual fund is suitable for long term capital growth. I would recommend investors who can retain it for long, and having flexible risk appetite. Returns here are either actively or passively managed by the fund managers. In the Equity mutual funds, investment can be started with as low as Rs 500 a month. You can choose to invest in equity mutual fund through SIP mode. The one thing that I like the most about Equity investment is the capital appreciation factor.
Another characteristic of this financial instrument that it gives high inflation-beating returns. It means if the stock prices rise it would appreciate the investment value. Thus I managed to gain a good amount of wealth over a period of time.

Talking about the diversification, funds in equity mutual fund are categorised into large-cap, mid-cap, small-cap, etc. This reduces the risk of loss.
Generally, Investors look forward to save tax through investing in ELSS (Equity linked saving scheme) funds. invest in a lump sum for the minimum lock-in period of 3 years. Under section 80C of the Income Tax Act 1961, in the current financial year you claim a tax deduction for up to Rs 1.5 lakh. Lastly, it is quite easy to get your corpus credit to your bank account. Don't worry about redemption. You can stop your ongoing SIP at any time through redeeming the number or all units. The process may take a week time for premature redemption or three days if it is a matured one.