Although equity has done very brilliant in past few decades, investors were not able to make money. There is a discomfort amongst Indian investors to invest in equity.
If as a wealth multiplier I ask you to invest in equities or equity funds, the obvious reaction will be “I want decent returns but I don’t want risk in our investment”
WHAT IS EQUITY?
Equity or shares is nothing but ownership, ownership in companies. For instance, if you hold 100 shares of an XYZ company out of 1000 shares floated by that particular company you are 10% owner of that company. Which means when that XYZ Company makes a profit you get your share in form of a dividend.
Equities is like farming –
- Sow a seed
- Water it for it to grow
- Have patience
- With time you will get fruits of your hard work and patience