Equity as an asset class gives the best returns when held for a long time. It involves holding instruments consisting of company shares. It means that the investor has an ownership in a business by owning a share of the company that is listed on a stock exchange and traded daily based on demand and supply. It is the most risky asset class in the short term scenario as the related price fluctuations is the highest. The average return this asset class has produced in last 15-20 years is approx 17% CAGR.
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