Why choose Equity as an Asset class for investments?

The investing landscape in India has changed drastically over the past few decades. It is no secret that Indians love buying gold and real estate. While there is increasing awareness on equity investing, it is still ranks below gold and real estate in preference order.
Over last decade Indian economy has grown at roughly around 10% per year. During the same period, listed equities in India (represented by Nifty 50 Index) have generated returns of around 12% per year. This means someone who had invested Rs 100 in Nifty 50 in December-2012 would have seen their wealth compound by around 3x over last ten years till December of 2022.
Meanwhile, gold and term fixed deposits - which are favoured by Indian investors - have returned 6.1% and 7% per year respectively. Over this period, the annual inflation in India averaged roughly 5.8%. So among all the asset classes only equities would have generated meaningful inflation beating returns and compounded investor’s wealth.
Guru Mantra with Saurabh is a podcast in association with Money9 where we dissect data & facts and try to explain why every Indian investor should seriously consider equity market for wealth creation.
Watch this first episode of the podcast series to learn more.
You can watch the other Episodes of Guru Mantra with Saurabh by clicking below:
• Why choose Equity as a...
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