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Historically, it has been proven that only the stock market and real estate investment can offer an above inflating return in the long run. Real estate required big ticket investment, thus this market is not accessible for small investor. For salaried individuals and other professionals, the stock market is the only way for wealth creation. Among real estate t and the stick market, the later should be the preferred choice for every individual due to the following reason.
- You can start investing in equities with an amount as low as $100 dollars. However, in real estate, you cannot invest with such a tiny mount. For any retail investor, equity investment I much more convenient.
- The stock market is highly regulated. Thus, price discover is much more transparent. Market regulator had taken several steps to safeguard the interest of small investor. However, in real estate, price discovery itself is not so transparent.
- Equity investing offers higher liquidity than real estate. You can purchase stock anytime and also sell them moment after buying. There I not obligation,. You cannot sell them after 1 minute, 1 month, I year or 10 years, whenever you want, however, in real estate, you cannot purchase land to sell it the very next day.
- You can buy and sell stock from anywhere in the world. With the advent of online trading, physical presence is not necessary, Buying and selling can be done with just a click of a mouse. However, the same cannot be said about investment in real estate.
Because of many such advantages and above inflation return, equities must be a part of everyone’d portfolio. Avoiding equity investment means your retirement life is at risk. The irony is that retail participation is lower in the stock market. Widespread misconception and lack of knowledge are the major reasons.