An equity asset class is a fascinating one and has been gaining popularity in recent years. Investing in equity means to buy into a business – when you buy shares of a firm, you have a percentage of ownership. The only hitch is that it comes with a certain amount of risk. Any business takes time to grow, and it is subject to market fluctuations, which can impact the share price.
Equities have the potential to make you money in two ways: you can receive capital growth through increases in the share price, or you can receive income in the form of dividends. Neither of these is guaranteed and there is always the risk that the share price will fall below the level at which you invested.