Direct equity investment refers to buying and owning stocks of companies listed on stock exchanges, such as the NSE or BSE in India, or NYSE and NASDAQ in the U.S. Unlike mutual funds, where a professional fund manager makes investment decisions, direct equity investors choose and manage their stocks independently.
✅ Higher Return Potential – Offers better returns compared to fixed deposits, bonds, or mutual funds over the long term.✅ Ownership & Voting Rights – Investors become partial owners of the company and can vote on key business decisions.✅ Transparency – Investors have full control over stock selection and portfolio management.✅ Liquidity – Stocks can be easily bought and sold in the stock market.