Why Long Term Investment in Mutual Funds is Important
Markets act differently in short term and long term situations. You need to compare return on investments over a 10-year performance and not for a month or for a year...
As an investor, you may pay close attention to the stock markets and find it difficult to understand why markets are so volatile. You may ask many questions like "Will markets achieve a new high tomorrow or has the time arrived for deep correction?" "Is this a good time to invest?" We don't know what the future holds. As a long term investor, it is important not to spend time dwelling on such questions rather, remain invested in the long-run.
Markets act differently in short term and long term situations. You need to compare return on investments over a 10-year performance and not for a month or for a year before you decide to invest in equities. In the short term, markets are volatile; however, investors who have long term investments in financial goals should not worry about volatility and should remain invested.
Benefits of investing with a long term horizon:
Benefits of investing in mutual funds:
Transparent and regulated industry - Above all, the mutual fund industry is regulated by the Securities and Exchange Board of India (SEBI) which protect the interest of investors and monitors functioning of the mutual fund industry.
Mutual funds are a one-stop shop for all your investment needs. Needs can range from wanting to purchase a car in the next one or two years to saving for your child's future and education in the next 10 years, saving up for your retirement, or saving tax on your regular income. Investors ideally look for diversification, low costs, ease and flexibility of withdrawal, better tax efficiency etc. Investors can achieve all their short term and long term financial goals through investments in Mutual Funds subject to market risk.
There are many other factors to consider, apart from the above discussed. You are advised to consult your financial advisor before taking an investment decision.
Disclaimer, Statutory Details & Risk Factors:
The views expressed here in this article / video are for general information and reading purpose only and do not constitute any guidelines and recommendations on any course of action to be followed by the reader. Quantum AMC / Quantum Mutual Fund is not guaranteeing / offering / communicating any indicative yield on investments made in the scheme(s). The views are not meant to serve as a professional guide / investment advice / intended to be an offer or solicitation for the purchase or sale of any financial product or instrument or mutual fund units for the reader. The article has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst no action has been solicited based upon the information provided herein, due care has been taken to ensure that the facts are accurate and views given are fair and reasonable as on date. Readers of this article should rely on information/data arising out of their own investigations and advised to seek independent professional advice and arrive at an informed decision before making any investments.
Mutual fund investments are subject to market risks read all scheme related documents carefully.
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Quantum Mutual Fund is India's first dedicated, direct-to-investor mutual fund.