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Factors Influencing Long Term Equity Investments:


The term “investment” always comes with long term reference.But its always seen that most of the retail investors judge equity investments like mutual funds with short term experience.There are number of reasons which affects the long term approach of investment.

Media Headlines: Media always believes in sensational and eye catching  head lines.E.g when NIFTY was around 5200 levels one of my friend catched my attention towards headline printed in one of the frontline newspaper: “U.S. Consumer Confidence At The Lowest Levels!!!”…I suspect most of the investors who have read this news have either take out the investment or avoid investing at that level..we all have seen market have rallied thereafter.so taking long term investment decisions based on media news needs to be avoided strictly.

Belief in Leveraging: Principles of Short term investments are totally opposite to the long term investments.In reality money can not be made in short term as much easily through leveraged positions across futures & options.Most of us do not have strong psychology to get succeed in short term trading business.

Market Volatility: Volatility is the strength of market.When market dip down it offers strength to the market.so occasional dips are very much important for further upswing in any kind of market.So long term investors should always take volatility in positive way.Fixed deposit rates are not volatile and fixed for the selected tenure once entered in the contract and thats why its called as a saving tool and not investment.

Frequently tracking  of investment:Frequently tracking investments likely to divert investors from long term perspective.Its obvious that investor get disappointed if money won’t grow with certain period of time.

so which type of investor you are? Do you also driven by greed and fear?Which other factors affects your long term investing decisions?Are you agree with the points stated above and do they applicable for you as well?

 


Category: Mutual Funds

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Information provided on this blog is for general purpose only & not investment advice.Please take advice of SEBI Registered Investment Advisors before taking any investment decision.
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