Why you should invest in equity?
In our modern world there are two types of income to make money . The first one way is earned income, either by working for yourself or for someone else also called active income. The second way by investing in passive income such as equity, real estate, gold, etc. Where the money is working for you, but equity outperforms other passive income because it gives the best return on investment (ROI) and we can start investing with a very small amount of money.
How Investing in equity helps the economy to grow?
When we start investing in equity the money starts going to different businesses which the allows it to raise capital to pay off debt, give employment, launch new products and expand operations, and thus more and more businesses becomes successful and gives a boost to the economy, because the capital starts flowing in the economy.
Now take the example of the US economy, we all know that it is the biggest and strongest economy of the world, but why?
Take a look at this :
In us about 50% of the population invests their money in stock markets, helping the economy to grow.
Why it is the right time to invest in equity?
We know that in India most of the people keep their money in banks in the form of FD's , RD's or CD's because they give a descent return on investment are risk free unlike equity.
But our country is developing and we have seen a trend that as any country develops day by day the interest rates given by the banks goes down (In USA its about 2%).
So, in future you may have to invest some amount of money in equity.
Lastly don't just go and invest blindly in stock markets , you must have to study about it before investing. So, start investing in Mutual funds and take baby steps into the world of equity.
~By Suddha
