Equitites / Shares

What
Equity investment refers to the buying and holding of company shares. Income from such investments comes in the form of regular payouts and capital gains, when the shares are sold at a profit. When the investment is in a start-up, it is referred to as venture capital investing and is generally understood to have higher risk than investments in listed firms.

Pros
Equity investors have the potential for higher returns

Cons
Investing in single company shares is riskier than a unit trust investment because of low diversification.

Best for
Savvy investors who do their homework and monitor the companies they invest in.