4 reasons of why you should invest in shares

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#4 Reasons of Why you Should invest in Shares

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Why equity is good investment for wealth creation? Why one should invest in shares ? Why equity can is better than FD? Investing, Shares, Stocks, Inflation, Compounding, Tax saving, High returns

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Page 1: 4 reasons of why you should invest in shares

#4Reasons of Why

you Should invest in Shares

Page 2: 4 reasons of why you should invest in shares

What are Shares

Shares are a part of ownership of the company. So shareholder are knownas the owner of the company

Shareholders get voting rights and participate in the profits earned by acompany

Investments in shares are risky but the rewards are high (investors getdividend and increase in price of the share)

Page 3: 4 reasons of why you should invest in shares

# 1 ReasonReturns

As seen from the graph,

returns on Shares are

comparatively higher than

• Fixed Deposit • PPF• Gold

9.0%

-10.4%

7.8%

18.7%

24.6%

27.4%

32.5%

4.8%

-10.1%

-3.7%

6.0%

9.5%8.5% 9.0% 8.5%9.5%

8.6%8.8% 8.7% 8.7%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

Mar-11 Mar-12 Mar-13 Mar-14 Mar-15

Last 5 Year Returns

Sensex Gold FD PPF

Page 4: 4 reasons of why you should invest in shares

Check Right Portfolio , as per your Risk profile

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Page 5: 4 reasons of why you should invest in shares

# 2 ReasonTax

The returns earned on Shares held for more than one year are Tax Exempt Dividends earned by an investor are Tax Exempt

Equity Mutual Funds

Debt Mutual Funds

Fixed Deposit Tax on Interest as per Tax Slab of Investor

Tax free if Sold after 1 year. 15% tax in case sold within 1 year of PurchaseShares

Bonds

Tax free if Sold after 1 year. 15% tax in case sold within 1 year of Purchase

10% Tax if Sold after 3 years. If Sold within 3 years then as per Tax Slab of Investor

Tax on Interest as per Normal Income Slab

For Detailed Analysis refer our Taxation page

Page 6: 4 reasons of why you should invest in shares

# 3 ReasonInflation

Present rate of inflation is 6%.

• BSE Sensex has delivered 11.9%Annual Return in past 5 years

• Comparatively returns on FD after

adjusting for inflation is ~2% which is

very low

As you can see in Chart , Shares provide an excellent protection against inflation and are very beneficial in the long run

Source: AdviseSure Research

12%9% 9%

11%

6%

9%

-10%

8%

19%

25%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

2010 2011 2012 2013 2014

Inflation vs Sensex vs FD

Inflation Sensex

Page 7: 4 reasons of why you should invest in shares

# 4 ReasonLiquidity

Shares are the most highly liquid instruments in the market

Bank Fixed Deposit

Saving / Current Bank Account

Corporate Fixed Deposit

Highly Liquid

Property

Equal to cash

Moderate Liquid

Illiquid

Debt / Equity Mutual Funds

Highly Liquid

Shares/Gold Highly Liquid.

Page 8: 4 reasons of why you should invest in shares

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Page 9: 4 reasons of why you should invest in shares

Risk ProfilingKnowing-

Risk Capacity- How muchRisk you can afford to take

Risk Attitude- How muchRisk you want to take

Financial GoalsKnowing-

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The Inflation adjustedamount required to meetthem

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Page 10: 4 reasons of why you should invest in shares

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Page 11: 4 reasons of why you should invest in shares

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Page 12: 4 reasons of why you should invest in shares

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AdviseSure Investment Advisors is India’s first only Advise platform where we help individual, managing his personal finance. AdviseSure Investment Advisors is part of AdviseSure VenturesPrivate limited. AdviseSure Investment Advisors is a SEBI registered Investment Advisor and its associate/group company empanelled with AMFI as a distributor .You can executetransactions with your banker, broker or agent/ financial intermediary . We also offer transaction services through various associations, at a substantially lesser cost to our clients ascompared to other financial intermediaries, so that you start your financial plan with AdviseSure Investment Advisors is a safe and secure platform. Our recommendations rely on historicaldata. Historical/ past performance is not a guarantee of future returns. The information and views presented here are prepared by AdviseSure Investment Advisors. The informationcontained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personalinformation and we are not responsible for any loss incurred based upon it. This document is solely for the personal information of the recipient. The investments discussed orrecommended here may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and usingsuch independent advice, as they believe necessary. While acting upon any information or analysis mentioned here, investors may please note that neither AdviseSure Investment Advisorsnor any person connected with any associated companies of AdviseSure Investment Advisors , accepts any liability arising from the use of this information and views mentioned here. Eachrecipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to inthis document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment.

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