Investing in equities/shares offers many benefits over other asset classes like a high level of liquidity which unlike property, gives you ready access to your money. There are more than 4,000 companies listed on the exchange in which you can buy shares to match your investment needs. Other benefits include:
Returns: Equities can help you build long-term growth into your overall financial plan. Shares can produce significant capital gains through increase in share prices over longer term. In addition, stocks pay dividend income and some companies even issue bonus shares to their shareholders which is another way of passing on company profits.
Ownership: Stock represents share in ownership or equity stake in a company. If you are a stockholder, you own a proportionate share in the company’s assets. That means you gain part ownership of the company.
Tax Benefits: Dividend income generated from shares is completely tax-free. Long-term capital gains arising on equity investment is not taxed by the government. That means, if you invest in a company and keep the shares for 12 months, you don’t need to pay any tax on income you earn on selling the shares after 12 months. Short term capital gains tax on shares is also just 15%, while investment in other asset classes attracts short-term capital gains tax of 30%.
Control over your financial future: You can choose to invest independently using your knowledge and expertise, share this responsibility with Arihant who can advise you on what shares to buy and sell or ask Arihant to manage portfolio for you.