Investing in equities for a long term has many advantages. Here is why equity investments have an edge over simply saving money in your bank account.
Inflation drives up the cost of living and eats away the value of your savings. Traditional investment avenues like Fixed Deposits, Bonds, etc. have a limited upside of 8 to 10%, whereas equities as an asset class have given an average annual return of about 13% in the last 10 years. Hence, when it comes to beating inflation, equities are undoubtedly your best bet.
Our philosophy of "Buy Right Sit Tight " has helped a lot of investors in long term wealth creation. Investing in good businesses and growth stories at an early stage provides unlimited upside potential. For example, your investment of Rs. 1,000 in the Infosys IPO in 1993, would have fetched you Rs. 30 Lakhs today. Not participating in growth stories would certainly be an opportunity missed.
Equities also provide you the flexibility of quickly changing your holding patterns to suit your requirements and also convert your holdings into cash instantly. This makes it the most suitable option compared to other asset classes for investors who are looking for liquidity.