If you invest in shares, your capital grows much faster than in most other traditional forms of investment, such as bank deposits, post office savings schemes, amongst others. Sometimes, it can grow as high as 1,000 per cent per annum. But all this depends on the smartness of the investor. How much knowledge and experience of the investor and the time and effort one is prepared to spend on managing the investment.

The Benchmark Sensitive Index gained 16% in fiscal 2006-07. However, closer inspection reveals that most of the financial advantages are from returns on Bharati Airtel, ICICI Bank, Reliance Industries and Infosys Technologies. Bharti Airtel jumped 85%, Reliance Industries 72%, ICICI Bank 45% and Infosys Technologies 35% during this financial year.

The third quarter profit of ICICI Bank, the biggest lender in India, rose to a record 42%. Reliance industries are known for reliability. And, the performance of Infosys Technologies is clear from the fact, that when the investor invested Rs. 1,000 in January 31, 1996, its value rose to Rs. 76,235 as on December 31, 2003. In addition to this the investor gained capital appreciation of 7,523% along with a substantial amount through dividends during the period.

So no matter what people may say of stocks, selecting the best equity funds for your portfolio is certainly not a dart-throwing game. The choice of equity funds can make a huge difference to your wealth.

Investments in shares enable you to keep well ahead of inflation. This is because share prices normally rise with inflation. By investing in shares you can secure your savings from being destroyed by inflation. This is a big advantage that shares have over other traditional forms of investment. And, people are attracted to shares precisely because they offer exciting possibilities- that of getting rich.