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Equity Gave the Best Return this Year as Compared to Gold Real Estate and Fixed Deposit with Liquidity

We have seen growth in the equity share market over the past 40 years. The market has outdone the other commodity markets and asset classes. With the annual growth of the industry being reported at 13.71 percent, it goes without saying that equity has given the best return over the past few years.

Even during the coronavirus outbreak and nationwide lockdown, the performance of the equity market remained almost unaffected. In fact, it did a whole lot better in terms of investment and returns than gold, real estate, fixed deposits, silver, public provident fund, and other assets.

Despite being considered one of the most volatile markets, equity has outperformed all the commodity markets. People have started to assume that one of the reasons for the growth of this market amid the lockdown and pandemic is the mutual funds.

People align their investments to potential returns, risks, and financial goals. It gets quite overwhelming for people to make an investment decision especially when they are stuck in a global pandemic or a simple situation.

The prices of the commodities have dropped globally. In fact, crude oil price went to a point where it was trading in the negative. The equity market has also seen panic trading amid the pandemic.

However, it is still performing better than other commodity markets.

Equity Market Outperforming the Asset Classes

Gold is often seen as one of the safest investment options. The compound annual growth rate of this asset was reported to be approx. 8.48 percent. Silver, on the other hand, had reported annual growth of 6.92 percent. The fixed deposits reported a growth of 8.62 percent annually.

It is quite clear from the stats that while all these markets have been witnessing growth every year, they can’t be compared to the equity market. Even though the latter involves high volatility, it has performed extremely well in the past few months. 

Contrary to what people believed, the equity market did not plunge during the global pandemic. For example, the medical and pharmaceutical sector grew with the growing awareness of people about healthcare and checkups.

The diagnostic labs and health industry as a whole have witnessed a growth amid the pandemic. Other than that, the stocks of different companies have grown over the last few months.

Gill Broking makes your Share Investment & Trading Experience simple with major exchanges like NSE & BSE.

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The Share Market A Guide to Trading (2)

The Share Market: A Guide to Trading – Gill Broking

It is, therefore, important to learn both the pros and cons of intraday trading to get a better idea of how this market works and how exactly you can grow your money. In this post, we will walk you through a few advantages and disadvantages of intraday trading. So, keep reading to learn more.

• Beware of fixed/guaranteed/regular returns/ capital protection schemes. Brokers or their authorized persons or any of their associates are not authorized to offer fixed/guaranteed/regular returns/ capital protection on your investment or authorized to enter into any loan agreement with you to pay interest on the funds offered by you. Please note that in case of default of a member claim for funds or securities given to the broker under any arrangement/ agreement of indicative return will not be accepted by the relevant Committee of the Exchange as per the approved norms.
• Ensure that pay-out of funds/securities is received in your account within 1 working day from the date of pay-out.
• Be careful while executing the PoA (Power of Attorney) – specify all the rights that the stock broker can exercise and timeframe for which PoA is valid. It may be noted that PoA is not a mandatory requirement as per SEBI / Exchanges.
• Register for online applications viz Speed-e and Easiest provided by Depositories for online delivery of securities as an alternative to PoA.

• Do not keep funds idle with the Stock Broker. Please note that your stock broker has to return the credit balance lying with them, within three working days in case you have not done any transaction within last 30 calendar days. Please note that in case of default of a Member, claim for funds and securities, without any transaction on the exchange will not be accepted by the relevant Committee of the Exchange as per the approved norms.

• Check the frequency of accounts settlement opted for. If you have opted for running account, please ensure that your broker settles your account and, in any case, not later than once in 90 days (or 30 days if you have opted for 30 days settlement). In case of declaration of trading member as defaulter, the claims of clients against such defaulter member would be subject to norms for eligibility of claims for compensation from IPF to the clients of the defaulter member. These norms are available on Exchange website at following link: NSE, MCX

• Brokers are not permitted to accept transfer of securities as margin. Securities offered as margin/ collateral MUST remain in the account of the client and can be pledged to the broker only by way of ‘margin pledge’, created in the Depository system. Clients are not permitted to place any securities with the broker or associate of the broker or authorized person of the broker for any reason. Broker can take securities belonging to clients only for settlement of securities sold by the client.

• Always keep your contact details viz. Mobile number/Email ID updated with the stock broker. Email and mobile number is mandatory and you must provide the same to your broker for updation in Exchange records. You must immediately take up the matter with Stock Broker/Exchange if you are not receiving the messages from Exchange/Depositories regularly.

• Don’t ignore any emails/SMSs received from the Exchange for trades done by you. Verify the same with the Contract notes/Statement of accounts received from your broker and report discrepancy, if any, to your broker in writing immediately and if the Stock Broker does not respond, please take this up with the Exchange/Depositories forthwith.

• Check messages sent by Exchanges on a weekly basis regarding funds and securities balances reported by the trading member, compare it with the weekly statement of account sent by broker and immediately raise a concern to the exchange if you notice a discrepancy.

• Please do not transfer funds, for the purposes of trading to anyone, including an authorized person or an associate of the broker, other than a SEBI registered Stock broker.

• Do not deal with unregistered intermediaries (who are not registered with SEBI/Exchanges).

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