What is a common reason for individuals to invest in equities?

Investing in equities is primarily associated with the potential for long-term capital appreciation. This means that investors buy stocks with the expectation that their value will increase over time, allowing them to sell those stocks for a profit. The stock market has historically provided higher returns compared to many other asset classes, such as bonds or savings accounts, particularly over long investment horizons.

Equities represent ownership in companies; as these companies grow and generate profits, the value of their stocks can increase, leading to capital appreciation. For many investors, the growth in value of their equities is a key factor as they look to build wealth and achieve their financial goals in the long run. Investing in equities carries risks, including price volatility, but the potential for significant returns attracts many investors looking for growth.