For any kind of long-term investment, the risk-reward ratio is heavily in favour of equity investments. All arguments for the primacy of 'risk-free' fixed income investments fall apart when you realise that what looks like freedom from risk is actually freedom to be poor, given the inflation-adjusted, post-tax returns.
For people who have never invested in stocks, it's hard to know where to start. There are two distinct ways of investing in equity, one is to choose stocks and buy and sell them yourself, and the other is to invest through equity funds. The final goal is nominally identical—to benefit from the superior returns offered by equity investing, but the two activities are completely different. Unless you are an expert, choose funds.
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