Disadvantages to the Investors

Some of the disadvantages in investing funds inequity shares form the point of view of investors are:

1. The market value of equity shares are most stable. The frequent fluctuations in prices will lead to psychological stress for the investor
2. Investing in equity shares is risky as the expectation of earning profits involves uncertainty.
3. The investor has to reside in a place where a stock exchange is located in order to find a broker and to deal with the shares at the right time and at the right price.
4. Over subscription of new issues of good companies reduces the hopes for an investor to get allotment of shares.