Equities as an asset class provide you the dual advantage of protecting your wealth from inflation along with enhancing your purchasing power. The key to successful equity investments lies in investing with a long-term perspective and keeping away from day-to-day uncertainties. Historical Data proves that equity as an asset class has performed better than any other asset class over the years.
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:
Take The Benefits Of Equity One Step Further
Derivatives do away with the need to invest a large amount of capital upfront and allowing you to benefit from market movements. This gives you greater liquidity than most other assets. They are an excellent avenue to help you leverage on anticipated market movements and an effective tool to hedge your risks, speculate and earn returns in a relatively shorter duration.
Take the benefits of equity one step further
You can trade in Futures - contracts or an agreement between two parties to either buy or sell a fixed quantity of assets at a particular time in the future for a fixed price OR Options – A similar contract, except the parties are not obligated to fulfill the terms of the agreement. These contracts are then traded in the market.
World's Largest Market - Driven By Fundamentals
A market that attracts about $5.2 trillion in daily volume, recognized as world’s largest market, accessible globally 24 hours a day – that is exactly what the Currency market is made up of! The advantage of small margin requirements and lower entry barriers makes it an important part of a retail investor’s portfolio. What’s more, you can trade in currencies through your existing equity account.
Diversify your portfolio for minimizing risks Commodity trading brings a basket full of diverse avenues for investment, away from the traditional avenues of equity, bonds and real estate. Based on the historical data, adding commodities exposure to your existing portfolio helps you increase the returns while lowering the risk. Commodities have very little or negative correlation with other asset classes
Convenient Way to enter into The Stock Markets
Mutual funds are ideal for investors who want to invest in various kinds of schemes with different investment objectives but do not have sufficient time and expertise to pick winning stocks. Mutual funds give you the advantage of professional management, lower transaction costs, and diversification, liquidity and tax benefits
Premium Investment Vehicle With Range Of Investment Options
Portfolio Management Service offers professional management of your investments with an aim to deliver consistent returns. It relieves you from all monitoring hassles with benefits like regular reviews, strong risk management flexibility and makes it an ideal investment avenue for high net worth investors
The primary market provides investor’s opportunities to buy shares at a reasonable price prior to its listing price. Additionally retail investors also enjoy discounted rates while applying for IPO’s. Holding on to the shares also provide an opportunity to participate in the future success of these companies
Exchange Traded Funds are essentially Index Funds that are listed and traded on exchanges like stocks. Until the development of ETFs, this was not possible before. Globally, ETFs have opened a whole new panorama of investment opportunities to Retail as well as Institutional Money Managers. They enable investors to gain broad exposure to entire stock markets in different Countries and specific sectors with relative ease, on a real-time basis and at a lower cost than many other forms of investing.
An ETF is a basket of stocks that reflects the composition of an Index, like S&P CNX Nifty or BSE Sensex. The ETFs trading value is based on the net asset value of the underlying stocks that it represents. Think of it as a Mutual Fund that you can buy and sell in real-time at a price that change throughout the day.