Equity, on the other hand, is an essential asset class for the long-term growth of savings with returns that beat inflation. Equity funds typically invest in stocks of companies and have proven in the past to provide inflation beating return over the long term. The key word here is long term, which we would like to define as longer than 7 years.
Investing in â€˜flavor of the season‘ financial instruments, namely gold and silver is a considered a smart choice by some. So is the decision to invest in FDs and PPF. Our studies indicate that an investment of Rs 100 in trusted financial instruments for 30 years would grow 22 times.
Every article and investment program on TV advices investors to stay invested with an investment horizon of long term. But how long is â€˜long-term‘? Read this space to know the magical number.
A typical question asked by investors to a financial advisor is 'What is a good time to invest in equity funds?' According to financial expert Sanjiv Singhal, the best time to invest is when you have the money. He also added that investor investing for the long term should not concern himself with daily or weekly price or benchmark movements.