Many investors shun equity completely to avoid risk. All who do so run the risk of having their returns eaten up almost entirely by inflation. Equity investment does come with risk, with high short-term volatility, but no one should invest in the stock market for the short-term and no one has good knowledge on stock market risk & returns. It’s a long-term investment that can deliver sizeable returns, greater than even property while offering high liquidity. The two most common ways to invest in equity is through the stock market and through mutual funds. Let’s understand which one you’re more suited to.

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