Importance of EQUITIES – Start your wealth journey now.

Importance of Equities
Equity has always been known as wealth creators but at the same time are wealth destructors too.
Normally the earning life of people is 25-60. i.e 35 years.
Now Debt Investments like FDs, Debt MFs, bonds etc give you a return between 5-8% depending on the tax bracket you are in.
The sensex which is the benchmark of the top 30 companies in India has delivered a double digit return of 12% annually. A majority of Equity funds have beaten it with a return of 15% on an average.
That means in your earning lifetime i.e 35 years, if you invest your money in Fixed Income it will double your principal every 12 yrs.
Which is to say:
25- you invest Rs/- 1
37- it becomes 2
49- it becomes 4
61- it becomes 8 and you retire
In equities
25- you invest Rs/- 1
30- it becomes 2
35- it becomes 4
40- it becomes 8
45- it becomes 16
50- it becomes 32
55- it becomes 64
60- it becomes 128
which is 16 times greater than 8.
Considering a worst case scenario, you will still settle far above 8.
What is is risk? Interim volatility OR retiring with a kitty 15 times less?
T H I N K
Start your wealth journey now.