Investment in equity shares of a company is done with the expectation that the investment will rise in value in the form of capital gains and/or generate returns in the shape of dividends.

If an equity investment rises in value, an investor can receive the monetary difference if he/she sell his/her shares, or if the company’s assets are liquidated and all its obligations are met. Equities can strengthen a portfolio’s asset allocation by adding diversification.

What are the potential benefits of equity investments?

• The main benefit from an equity investment is the possibility to increase the value of the principal amount invested. This comes in the form of capital gains and dividends.
• An equity fund offers investors a diversified investment option typically for a minimum initial investment amount.
• Investors may also be able to increase investment through rights shares, should a company wish to raise additional capital in equity markets.

Investing in equity market requires thorough market knowledge backed by investing experience, which only a professional can have.

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