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#4

Reasons of Why
you Should invest
in Shares

What are
Shares
Shares are a part of ownership of the company. So shareholder are known
as the owner of the company
Shareholders get voting rights and participate in the profits earned by a
company
Investments in shares are risky but the rewards are high (investors get
dividend and increase in price of the share)

# 1 Reason
Returns

Last 5 Year Returns


35.0%
30.0%

32.5%
27.4%
24.6%

25.0%
18.7%

20.0%

As seen from the graph,


returns on Shares are
comparatively higher than

15.0%
10.0%

9.0%

9.5% 8.6%

9.5%
6.0%

7.8%

8.5%

8.8%

9.0%

8.5%

8.7%

4.8%

5.0%
0.0%
-5.0%

Fixed Deposit
PPF
Gold

8.7%

-3.7%

-10.0%
-10.1%

-10.4%

-15.0%
Mar-11
Sensex

Mar-12
Gold

FD

Mar-13
PPF

Mar-14

Mar-15

# 2 Reason
Tax
The returns earned on Shares held for more than one year are Tax Exempt
Dividends earned by an investor are Tax Exempt

Shares

Tax free if Sold after 1 year. 15% tax in case sold within 1 year of Purchase

Equity Mutual Funds

Tax free if Sold after 1 year. 15% tax in case sold within 1 year of Purchase

Debt Mutual Funds

10% Tax if Sold after 3 years. If Sold within 3 years then as per Tax Slab of Investor

Fixed Deposit

Tax on Interest as per Tax Slab of Investor

Bonds

Tax on Interest as per Normal Income Slab

For Detailed Analysis refer our Taxation page

# 3 Reason
Inflation
Inflation vs Sensex vs FD
30%
25%

Present rate of inflation is 6%.

25%
20%

BSE Sensex has delivered


Annual Return in past 5 years

11.9%

Comparatively returns on FD after


adjusting for inflation is ~2% which is
very low
As you can see in Chart , Shares provide an
excellent protection against inflation and are
very beneficial in the long run

15%

19%
12%
9%

10%
5%

9%

11%
6%

8%

9%

0%
2010

2011

2012

2013

2014

-5%
-10%

-10%

-15%
Inflation

Sensex

Source: AdviseSure Research

# 4 Reason
Liquidity
Shares are the most highly liquid instruments in the market
Shares/Gold

Highly Liquid.

Debt / Equity Mutual Funds

Highly Liquid

Bank Fixed Deposit

Highly Liquid

Saving / Current Bank Account

Equal to cash

Corporate Fixed Deposit

Moderate Liquid

Property

Illiquid

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Regular Review and Rebalancing
Unlimited Long Term Investment Advise
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No Minimum investment
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(Optional)

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