Tags: Wealth Management, Investment Lesson, Mutual Funds, Mutual Fund Basics, Stock market, Budget, Finance, Investing, Personal Finance, Investment, ETFs, SIP, Multi cap
This is the owner’s capital in a business. Someone who buys shares in a company becomes a part-owner in the business. In that sense, this is risk capital, since the owner’s earnings from the business are linked to the fortunes, and hence the risks, of the business. When one buys the shares of a company through the secondary market, the share price could be high or low in comparison to the fair price.
Historically, equity investing has generated returns in excess of inflation, which means the purchasing power of one’s money has increased over the years. It has also delivered higher returns than other investment avenues, most of the time, if one considers long investment periods. Since the base year of 1979, Sensex has grown from a level of 100 to around 66000 i.e., July 2023. This is an appreciation of around 16 percent p.a., compounded annually.
Apart from long term capital appreciation, equity share owners may also receive dividends from the company. Such dividends are shared out of the profit that the company has generated from its business operations. If the company does really well, the dividends tend to grow over the years.
To sum up, equity share prices generally fluctuate a lot, often without regard to the business fundamentals. However, over long periods of time, the share prices follow the fortunes of the firm. If the profits of the company continue to grow over the years, the share price follows.
Disclaimer:
The information set out above is included for general information purposes only and is not exhaustive and does not constitute legal or tax advice. All complaints regarding Mutual Fund can be directed towards visit www.scores.gov.in (SEBI SCORES portal). Readers are requested to make informed investment decisions and consult Chaitanya Financial Consultants – 9000628943 / mfd.mmr@gmail.com to determine the financial implications with respect to investing in Mutual Funds.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Start your investment journey with us, Today!
Join WhatsApp group for better and personalised communication regarding investment lessons, advice and help.
https://chat.whatsapp.com/ICBH5SOxFfgEVVx0BAQags
Note: Members of our WhatsApp group will enjoy lifetime free investment advice and will not be charged any consultation fee for mutual fund investments.
Support My Mission – Your Small Contribution Matters!
I am passionate about sharing financial knowledge and guiding people toward financial independence. Through my articles, I strive to provide valuable insights that can help you make smarter investment decisions and secure your future.
If my work has added value to your financial journey, I would truly appreciate your support. A small contribution from you—whatever amount you feel is right—will go a long way in motivating me to continue creating high-quality content.
💰 You can support me via:
✔ Paytm / Google Pay / Amazon Pay: 9000628943
✔ PayPal: manomatt@rediffmail.com
Every small payment is not just financial support—it’s an encouragement that fuels my passion for educating and empowering others. Thank you for being a part of this journey! 🙏
Here’s your chance to earn extra money effortlessly. Simply refer someone to invest in any mutual fund scheme, and as soon as they invest, you'll receive ₹100 - ₹200 instantly in your bank account via Paytm or PhonePay. Start referring and start earning today!
