Equity

Equity fund investments are investments in stocks or equity of companies. Equities function as an asset as they provide you the twin advantage that is

1. Protects your wealth from inflation and

2. Boost your purchasing power.

The key to booming equity investments lies in investing with a long-term perspective and keeping away from day-to-day uncertainties. Equity system attempts to provide potential for high growth and revenues. It is a suitable vehicle for long term wealth creation.

Benefits of Equity

i

Capital Appreciation

Primary benefits of equity investments is that - As a company grows it earns profit, thereby it usually chooses to reinvest the profit to grow through increasing market share, product developments, etc. With the increasing growth of the company, the market price of the stock increases, leading to capital appreciation for the investors.

i

Beats other investments in terms of growth

Invested over a time horizon of a decade; investing in equity has consistently given returns of a yearly growth of 16 %, more than FD or other debt instruments, this is an ideal way to insure that the money of the investor is inflation proof.

i

Portfolio Management

As an average investor’s knowledge about the stock market is limited, knowing what share to buy? At what time? Becomes a hurdle while investing directly in equity, by investing in blue chip companies the volatility of the share market can be muted to an extent to provide security to the investor funds.