Introduction to Financial Markets (405) — CBSE Class 10 board question

Two benefits of investing in equities/shares are:

1. High Returns: Equities are the most rewarding investment option when held over a long duration. The Indian stock market (Nifty index) has given an average return of about 16% per annum in terms of capital appreciation over the last fifteen years.

1. Dividend Income: Besides capital appreciation, stocks have also paid an average dividend of 1.5% annually, providing an additional source of income to shareholders.

Source: Chapter 4, Section 4.2.1 — Equity Investment

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• The question asks for any two benefits, so pick the two most clearly stated ones from the passage — high returns (16% average) and dividend income (1.5%) are the most specific and examinable points.
• Mentioning the Nifty benchmark and the 16%/1.5% figures adds precision and can help secure full marks.
• Avoid writing about risks here — the question is only about benefits.