Why Equities Best for Young People

I was sitting in an airport lounge when a young woman approached me and said "I watch your YT videos, but sorry, I don't invest in equities".

- PV SUBRAMANYAM

She left after a short conversation. My views on equities have changed over the past 4+ decades — it has only increased my 'pro-equity' stance.

Thanks to late Mr. Jack Bogle (Vanguard funds) in USA, Sebi, and competition, the asset management fees are at its lowest. There is a fantastic back end — the stock exchange creates a price discovery mechanism so I am sure that the asset manager is not lying about the transaction price, timing or quantity. Unlike Private equity, Real estate, Private credit, Art, venture capital funding, the equity market is open (MFs too).

If you are a young investor there are many OLD reasons too to invest in equities. Equities are often considered the best asset class for young investors due to their unique combination of growth potential, time horizon alignment, and risk-reward dynamics. Here's why: