5 Common Equity Investment Myths Debunked

It would be wrong to say that- money can’t buy happiness. In present times, having enough finances goes a long way in enabling you to lead a happy and contented life.But, there comes a time when you are not in a position to earn more money. This is when your savings come into play.

5 Common Equity Investment Myths Debunked

With time, everyone understands the need for wealth creation, pertaining to which there are several options where you can invest your money. Among many such options is investment in equities, which though highly profitable are not considered as a good option because of the 5 common myths that have been debunked herein.

1.“Equities is all about Luck”

One of the biggest myths surrounding equities is that it is just a matter of luck. However, the fact is equities are more of highly calculative investment strategy that can be cracked by experts. Before investing in equities, it is important to know about the market trends and not just go along with the fad. It is not necessary that only the stocks of a reputed company are the ones to be invested in.

2.“It’s a one-way road with minimal returns”

The returns from investing in stocks would depend on several factors, for example, the type of industry you are investing in. Investing in an established firm would fetch you good returns and aid your wealth creation but at the same time investing in stocks of blue chip companies promise a greater amount of return. Similarly, multibagger stocks are those that have returns potential of 100% or more. So, your returns depend on your choice of investment.

3.“Seeking the services of an advisory firm means handing over your money forever”

Investing in equities requires an insightful outlook of the stock market and of the changing trends to predict the future growth aspects of the stocks. Therefore, it is better to seek the services of an equity advisory firm. Many also believe that such advisory firms rip you off, of your money. But the truth is, a SEBI regulated advisory firm works as your manager and feeds you with equity advice, which may or may not be followed by you.

4.“It is a massive investment”

It is believed that only those born with a silver spoon can invest in equities. However, investment in equities can be done by systematic investment planning as well. Major equity advisory firms suggest buying stocks in SIP for a modelled portfolio.

5.“There are secrets to secure good returns in equities which are known only with age”

A lot of people believe that one can secure good returns in equities only with age because only then one can know the secrets to secure good returns. However, the secret to secure good benefits are pretty much knowledge and understanding of the stock market. It is solely dependent on your understanding of the market trends and your ability to predict. The advisory firms fetch you the research reports based on this concept.

So, now that you know that equities are much more than just luck and are risk-free as well as rewarding, seek the services of an equity advisory firm for strategic wealth creation.

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A graduate in Financial Accounting and Business Analyst by profession from New Delhi, India. A writer, stock market consultant, and small business operator. Sometimes, all at the same time. I enjoy driving and love sea-food.

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