THE VALUE STRATEGY OF INVESTING
Why Equities?
- Why Large caps?
- Why Value Strategy?
- Investing Style?
Key benefits of Investing in Equities as an asset class:
- Proud ownership of companies
- Wealth Creation in the long term
- Dividend income
- Higher liquidity
- Tax benefits
To sum up
- Equity markets have historically produced higher returns than gold, real estate, bank deposits, or other fixed-income assets over the longer term (source: Bloomberg)
- Historical data states that the risk of capital loss does exist especially in the shorter term but with longer periods of investments, this risk is negated
This chart adjusts compounding interest and inflation rate. Tk. 100 has become Tk. 5399 in the stock market instead of Tk. 185 only from bank deposit between FY1990 to FY2017.