You must have heard this often – equity investments are for the long term. But how long is the long term? Is it 5 years, 7 years or 10 years? Let’s find out

Two things. One, the number of years you must stay invested to avoid negative returns. Two, the probability of earning 10% or higher returns is very high.

We studied Nifty 50 TRI data for the past 24 years. Investors never lost money if they stayed invested for 7 years. In fact, most of them made over 10% returns.

We studied Nifty 50 TRI data for the past 24 years. Investors never lost money if they stayed invested for 7 years. In fact, most of them made over 10% returns.

Chances of earning over 10% increase the longer you stay invested. Our study revealed investors definitely made over 10% returns if they invested for 20 years.

Your returns are more stable the longer you stay invested. For example, in one year NIFTY 50 TRI has seen returns as high as 108% and has also witnessed correction of up to 55%.

When opting for equities, invest for at least a 7-year horizon. So, use stocks and mutual funds for long term goals like retirement and children’s education.

[ad_2]

Source link