Thread by @nathansha_d

Most Indians consider equity to be an asset class meant for speculation, and consider house/gold/FD as the safest investments. However, equity can give better returns if held with the same discipline for a longer term. (1/n)

#stocks #finance #investing #equity

Amidst all the noise, we have forgotten the basic definition of equity. Equity is a stake in a company. When the company prospers, the stake becomes more valuable. Holding some good names for a longer term has an added advantage to a person’s wealth creation. (2/n)
#Finance

FD gives -ve inflation adjusted post tax return, and real estate has its own cycle of ups and downs. Yet, these are considered as safe havens. Gold has always given positive returns and Nifty, in the last 10 ys has given an average return of 12-13%. (3/n)

#stock #Investment

Multibagger stocks giving 100X returns are commonly heard off. Exiting equity is a lot more convenient and less costly. But a common man, would rather buy multiple properties because its "safe", than invest in equity at all. (4/n) #Investment #stocks #equity

The basic requirement for wealth creation is appropriate asset allocation.
To diversify savings in various asset classes, and allow it to compound with a healthy "inflation adjusted post tax return". (5/n)

#investing #stocks #equity #realestate

Equity on a longer term has usually given positive returns. However, it is comparatively volatile in the shorter term. Hence a person of a younger age, can allocate a sizable portion in equity, and let the amount compound for a longer time frame. (6/n)

#investing #stocks #equity

While the intricacies of investing in equity may not be known by all, it is advised to approach experienced advisors or plot the money with good mutual funds. Investing based on some Chacha’s tip has barely done any good to anyone. (7/n)

#investments #StockMarket

Here are some checks you can additionally undertake while choosing the fund:
- Return of the fund over a longer period should be atleast higher than the average return by the stock index (nifty/sensex)
- Fund expense should be nominal, remember, expense compounds as well (8/n)

One step further to your research, you can google for certain model portfolios published by reputed advisories. You can further read the research reports on various companies. This data is plentily available in the public domain. (9/n)
#stocks #sharemarket