Thursday, October 8, 2020

What is Long term Investment?

Long Term Investment

Long term Investment is a value of Investment which you will get the results after a long period of time. It is very hard without any breaking rule we can save 100 rupees everyday for 30 year. The actual value of investment is compounding. For example : If you are saving 100 rupees every day for 30 year and you will get flat 7% interest on it. Your value of money will be 13,140,000 and interest will be 919,800. This is called power of long term investment but in share market it will be more powerful and the real value of money will be much more than this.

Benefits of Long term Investment :

  1. Wealth creation
  2. Low Volatility
  3. High chances of gaining
  4. Higher Growth
  5. High dividend
  6. Balance your portfolio
  7. Tax rebates

Conclusion : Long term investment is always a safe investment in which you will get enough time to correct your mistake and balance your portfolio time to time. The real value is investor will get bonus, dividend, stock split etc. However, no need to look portfolio on regular bases. Hence, the real gain is in long term investment which will gives you 90% chance to be a rich in a time frame.



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