New Delhi, Sept. 17 -- Investing in the equity market is one of the most efficient ways to build generational wealth. Equity investors purchase ownership stakes in businesses through stocks or shares. As a shareholder, you become a partial owner in a business. The returns that one makes in equity investments are primarily generated from capital gains and dividends.

The long-term capital gains tax (LTCG) on equities is currently 12.5%. Under the current tax regime, capital gains exceeding Rs.1.25 lakh in a financial year are taxed at 12.5%. Generally, equities compound by 12-13% on an annual basis. Still, it is crucial to keep in mind that investments in equities come with higher risks compared to fixed deposits, bonds and other similar f...