Why investment in Equity is Better Than Gold,Fd,Real estate

Which One is Better Investment Options?

  • Equity
  • Gold 
  • Fd
  • Real Estate
Why investment in Equity is Better Than Gold,Fd,Real estate
Suppose i have investments in real estate, gold & fixed deposits.

However, experts often advise me to invest in equity. Let’s see why?

1.Equity requires low investment: Unlike Fixed Deposit, Gold & Real estate, you can enter the equity market with a much smaller capital.
Why investment in Equity is Better Than Gold,Fd,Real estate

2.Equity offers higher returns: It is historically proven that Equity offers better returns in comparison to FD, Gold & Real-estate.

Why investment in Equity is Better Than Gold,Fd,Real estate

  • Returns on Equity beat inflation & are completely tax-free
  • Equity offers high liquidity. Equity can be bought & sold very easily & converted to cash pretty fast.
  • Equity is the best performing asset class. Equity increases your wealth faster over a long time due to compounding effect, capital appreciation & dividend income.
For example if in 1993, Msroor  would have invested Rs.10,000/- in FD & Infosys Shares, today, they would be worth Rs.66,500/- & Rs.1.25Cr respectively.

Why investment in Equity is Better Than Gold,Fd,Real estate
E-exch.Net | Stock Market


  • Benefit #1Returns & Dividends: If the company,Masroor has invested in, earns a profit their stock prices rise increasing the value of his investment and giving him returns.
In addition, the company might also share its profits in the form of dividends.
  • Benefit #2Liquidity: Stocks are traded in exchanges and can be quickly turned into cash.
  • Benefit #3Portfolio Diversification: Masroor can spread his investment over different companies and industries reducing any risk of loss.
To leverage theses benefits, Masroor is now ready to invest in equity shares with Hdfc Broking as his trusted partner.


Choosing the best stock broker is also about choosing the best demat account for beginners. After all, your trading account opening and demat account opening typically happen simultaneously. So, which is the best stock broker in India and which is the best demat account for small investors. While we will not get into specific brokers, let us cover the parameters and factors that will help make this decision.

Remember These few tips to find out best brokers 
  • Is the broker a respected name in the market?
  • Does the broker offer a 2-in-1 account or 3-in-1 account?
  • How is the online trading platform of the broker?
  • What are the add-ons that the online trading site offers?
  • How is the follow up services provided by the broker?
  • Does the broker offer a one-stop shop of all products?
  • Lastly, is the broker in touch with the future?




Stock market is a casino

The reason many people do not invest in the stock market is because they believe stock investing is equivalent to gambling. This implies that investing is a zero sum game, where somebody has to lose for somebody else to win and no value gets created. However, this is an absolutely wrong notion.
It is proven that you can make consistent profits in the capital markets if your investment decisions are backed by proper research. This is because when you invest in stocks, you are in essence providing capital to the most efficient and productive company. This company will use the capital to generate higher returns and profitability. Thus, the overall pie increases for all investors.


Stocks trading at low earnings multiple are good.

The strategy based upon buying stocks with low P/E ratios is called value investing. Benjamin Graham is often named as the proponent of buying stocks trading at low price-to-earnings or P/E multiples. Conventional wisdom would indicate that lower the price compared to earnings, the better the deal. However, picking the cheapest stock available may also mean picking up a business with the worst growth prospects. There may be a good reason why the stock is trading cheap.


Stock that comes down, will go up eventually or vice versa.

Most people just can’t resist a good bargain and tend to purchase stocks that are trading near their 52 week lows. Buying a falling stock can have the same effect as trying to catch a falling knife: You may get hurt, almost every time. When a stock falls, investors need to research the reasons for the fall. Is the decline only due to market sentiment, which may reverse; or is the fall due to some significant event which may hurt the financials of the company? Also, just because a stock has seen a sharp rally, does not mean it cannot appreciate further. The reason for investing should not be biased by the rise or fall in the stock price. The buy/sell decision should always be based on proper analysis of the intrinsic value of the stock.


Fast growing companies make good investments.

When it comes to investing, there is a belief that one can pay any price for expected growth. This was the reason why we saw the tech bubble at the beginning of this millennium. However, fast growth companies can trade at abnormally high multiples and just investing based on the growth prospects of the company may result in the purchase of highly expensive stocks. Investors should value securities based on fundamentals. If they are not competent to conduct this exercise, they should take the help of experts to help them with the valuation process.


You Have To Have Money To Make Money.

Investors need not have money to make money, but rather need to be disciplined. Regular investing of smaller sums over a long period can unleash the power of compounding and make millionaires out of ordinary investors. Regular investing also results in cost averaging over time. So, it takes hard work (to research good stocks) and disciplined investing to make money in the stock markets.


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