Why we should invest in Shares?

Let's see what are the benefits of Investing in Equity

• Capital Gains
  This is when a share's selling price exceeds its initial purchase price. If the selling price falls beyond the purchase price, you would make a capital loss. Capital Gains are free of tax.
• Dividends
  A company may decide to payout a portion of its earnings to shareholders. But companies are not required to pay dividends.
• Rights Issues
  The company may extend this privilege to existing shareholders to buy shares at a specified and usually discounted price, usually in proportion to the number of shares already owned.
• Distribution by the company
  Shares shall be offered to the holders of existing shares in a manner which would, if the offer was accepted, maintain the relative voting and distribution rights of those shareholders.
• Liquidity
  Shares quoted on a stock market are generally liquid. Therefore, they can be sold easily and you can get your money back in a few days.
• Higher Returns
  In the longer term, shares have ensured a higher return to investors.
• Hedge against inflationShares are a good investment in an inflationary environment, since share prices increase to protect investors from the effects of inflation.


• Collateral
  You may also use your shares as collateral against loan facilities to banks.