Strategic Equity Investments for continuous growth and compounding returns

Seamless trading experience

Maximised portfolio returns

Sustainable wealth creation

What is Equity ?

Equity is a stock/ share or any other security that represents an ownership interest in a company. Hence when you own a company’s share, you are part owner of that company. Equity investors purchase shares of a company with the expectation that they’ll rise in value in the form of capital gains, and/or generate capital dividends since the company would grow.

What types of equity investment options are there ?

For most retail investors, the two main equity investment options are: two types of equity shares and equity mutual funds. Other options include private equity, which includes venture capital.

Why invest in equity ?

Investing in equity offers growth potential, ownership in companies, dividends, and diversification benefits, making it key for long-term wealth building.

Dividend

One of the benefits of investing in equity is that it offers returns in not just one, but two forms — capital appreciation and dividend income. A dividend is a distribution of surplus profits by a company to its shareholders. Dividend income is essentially an additional income to the investor.

Beat inflation and facilitate wealth creation

Inflation is one of the major constraints to wealth creation. The rate of return on your investment should ideally be higher than the inflation rate. The inverse case would result in wealth erosion. Investing in equities allows you to earn a high return rate that can potentially beat the inflation rate by a large margin. This is how equities facilitate wealth creation in the long term.

Protection by SEBI

In India, the stock market is regulated by the Securities and Exchange Board of India (SEBI). Amongst other functions, the regulatory framework created by SEBI is responsible for protecting the rights of all investors. SEBI has been instrumental in reducing the advent of fraudulent activities by companies or individuals.

Diversified investments

A general rule for investing is to diversify. The common adage is – “don’t put all your eggs in one basket”. Diversification helps reduce risk concentration associated with a particular investment instrument. Equity investments deliver an acute edge by diversification. Stock market fluctuations are independent of other investments such as bonds and real estate. Adding stock to your portfolio means greater risk but it also delivers sizable and rapid gains. This can also assist you, as an investor, to avoid overly conservative investment strategies.

Liquidity

Stocks are generally considered liquid assets. The shares can very easily transfer ownership. The average daily volume of transactions on NSE and BSE is considerably high. This means several buyers and sellers are participating in the market at any given point of the day.

Tax advantage

Equity investments offer tax benefits. Long-term capital gains (LTCG) up to Rs.1.25 lakh from equity investments are exempt from tax. Otherwise, LTCG of above Rs.1.25 lakh are taxed at 12.5%. Short-term capital gains (STCG) from equity investments are taxed at 15%. The return earned on other assets invites a higher tax obligation than equities do.