If you already invest or you’re planning to start investing, your main objective is most likely to be to earn a good return and grow your wealth. Equity investments are an option to consider if you wants grow your wealth over time. On this page, you’ll learn what equity investments are, the different types of equity investments and why you may want to consider equities.

Equity refers to the shares in a company’s ownership. In simpler terms, it is the units of partial ownership in a company and are commonly known as shares or stocks. Thus, equity investments mean you’re investing money into a company by purchasing its shares. Once you have a share in the company, you become one of its owners or shareholders. The goal of an equity investment is to invest in businesses that will grow, hence increasing the value of the invested fund over time.

Investing in equity shares is popular among individuals because they are high-return investment options. However, despite their potential to bear high returns, they also expose an individual’s investment portfolio to a certain degree of risk. Equities are market-linked investments that do not come with an assurance of bearing fixed returns. Returns on equity thus depend on the performance of the business you invest in.

Equity investments can be broadly divided into two categories: Public Equity and Private Equity.