Hello friends, how are you all?? hope all are enjoying, Today i would like to dicuss on Long-term investment. As we know Investing your money for the long term is an effective method of achieving your bigger life goals in future. Long term investment secure your future.At present invest the small amount montly money through System Investment Plan(SIP) in Stocks, Mutual Funds, bonds etc., for atleast for 15 year, during the maturity time you will get Handsome amount.This approach is particularly important for investors who chase long-term goals such as retirement planning, buying a house, foreign education of their children and other bigger goals that require Bigger amount of money.
On the other Hand, Often short to mid-term investment is what people look at as they want to get the benefits in the short time as within 2-3 years. However, there are many people i know who consistently invest a small amount from their 20's and by the time they grow old, their gets higher amount to help them fulfil their financial requirements.
The compounding interest is a interest you earn on interest. Compounding is a fundamental principle in long-term investing. When you invest for the long term, after some time you get interest on interest.The power of compounding Interest can be easily understand. Let's understand it by an example suppose you start investing around $120 every month for 10 years, your invested amount will be $ 14400, you will ends up with $27645 at rate of minimum 8%. This is Power of Compounding. The more early age you start investing the higher amount you will receive in future.
Market Volatility measures Price Movement over a specific time period. Usually people invest when the prices are high in lure that it will go more high but unfortunately market moves towards down direction, chances of loss in more in short and mid term investment.
Yes, with the long-term investment is suited for achieving your future Financial goal such as buying home, retirement plan, foreign Education for your child, sudden uninvited diseases, i must say you can enjoy your old age without any fear. The longer term allows you to systematically accumulate your money and work towards these above goals without the pressure of immediate returns.
Long-term investments act as a hedge against inflation, inflation is increasing every year by providing the potential for higher returns than traditional savings accounts, Recurring deposits(RD) and Fixed Deposits.
Do you believe in Long-term Investment?
This is my opinion of investment as every individual as their own Perspective for investment.I will not say 'm totally depended on long term investment, i have diversify my portfolio by investing some amount of SIP in Mutual fund, buy 5 gram of gold every years, have some stocks which are actually in loss, invested in crypto too which is currently in loss. I really don't have any idea when will my losses convert into profit, i know there will be significant growth in Crypto currency. Let's see how much time it will take to recover my losses, but i have positive hope that soon i will see green graphs every where 😜
