Equity Investments
What it means
  • The initial capital invested in a business by its founders is its capital stock, and is divided into multiple shares.
  • Equity investments refer to the buying and selling of these shares.
  • You can also invest in equities through mutual funds, ideal for those who cannot research stocks.
How it benefits you
  • Out-performance: In the long-term, investments in equities have out-performed other forms of investments.
  • Returns: The average return from the Bombay Stock Exchange Sensex from March 1990 to March 2015 has been 15.39% CAGR (Compound Annual Growth Rate), higher than most other types of assets.
  • Liquidity: Share investments can be sold easily on the stock exchange.
  • Tax: At present, long-term capital gains, or gains made when shares are sold after a holding period of more than one year, are tax-free.
  • Hedge against inflation: The consequent increase in stock prices negates the effects of inflation.

How You Make Gains

 

  • Capital Gains: The growth in the share price over a period of time.
  • Dividends: Paid by the company based on profits for the year and determined on the par value of the share.
  • Rights Issues: A preferential right to shareholders to subscribe to additional stock, at a price generally below its market value. This generally increases the share-price thus leading to a capital gain.
  • Bonus Issues: Allotment of shares free-of-charge to shareholders. When a company wishes to capitalize a part of its large reserves, bonus shares are issued. This usually increases the share-price, resulting in a capital gain.
Why Abundanze
  • Affiliations: with specialized portfolio-managers allow us to create a highly customized portfolio of individual shares.
  • IT-enabled and Online: Access and monitor your portfolio from anywhere.
  • One Stop Solution: Gives you access to personalized asset allocation, world-class fund management, and systematic portfolio rebalancing.
  • Review: We regularly monitor the performance of your investments, and their strategies, to ensure your objectives are met.
 
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