What is Equity Market ?
Equity market is a place where stocks and shares of companies are traded. The equities that are traded in an equity market are either over the counter or at stock exchanges. Often called as stock market or share market, an equity market allows sellers and buyers to deal in equity or shares in the same platform.
First things first, it is important to begin with a good understanding of what is equity market in the Indian context. Equity market, often called as stock market or share market, is a place where shares of companies or entities are traded. The market allows sellers and buyers to deal in equity or shares in the same platform.
In the global context, equities are traded either over the counter or at stock exchanges. There are multiple buyers and sellers of the same equity/share. Hence, you stand a good chance to strike a nice deal at the equity market. If you want to begin online equity trading in India, you have to get a demat account.
Long-term wealth creation
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:
One of the best avenues to fight inflation
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
Source of Long term wealth creation
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
One of the most Liquid investment options
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