Question:

Investing in equity is better than bonds.....How?-----Pls explain?

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Investing in equity is better than bonds.....How?-----Pls explain?

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2 ANSWERS


  1. Equity:

    better expected return.

    you won't lose money to inflation in the long run.

    Fixed income:

    lower risk


  2. Investing in equity is not better than investing in Bonds.

    They are both investment solutions that cater to investors with different investment objectives.

    Equity Investments tend to offer a high(er) rate of return than bonds in the long run. However, equity investors also face larger risks when investing in stocks.

    Some investors prefer to preserve their capital and avoid risk in their portfolio. These investors will be likely to have a significant portion of their investment allocated to bonds.

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