Long Term Investor till stock market tanks- said by Amar Pandit(Certified financial planner CFP)
When the investor reacts on the market and takes reacts immediate means he doesn’t have stomach for risk and he cant think of long term investment. It is because that long term investment is depends on ones financial well being.
People often fails to long term mostly in case of equity investment.
Long Term Investment Types e.g.
· Equity investment/fund – EPF 30 years
· Provident fund – PF till you work
· Public provident fund – PPF 15 years
· Real Estate can be more
Experienced and seasoned investor continue with their investment programme realizing benefits of buying stocks when the market is down. To achieve goals in life one should view financial need and planned.
For e.g. child education, retirement to be planned 10-15 years ahead. Not including the possible returns or the impact of inflation on corpus, you wouldn’t get realistic picture. Just be away from unpleasant surprises in last moment.
Long term investment will also come handy when one reallocate assets. A very good example when stock market was down people included gold in their portfolio since view was market may take long time to recover because of uncertainties in global economy and gold will add stability to one portfolio.
Tags; investment, India, Stock market
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