Opinion | When it comes to equity investing, long term is a lot longer than you think
4 years, 11 months ago

Opinion | When it comes to equity investing, long term is a lot longer than you think

Live Mint  

The covid-19 pandemic has resulted in one of the sharpest crashes in the Indian equity markets. For lump sum investments, the lowest holding period return would have been 5.8% during the 2008-09 global financial crisis. The average 15-year holding period return for both lump sum and SIP investments is close to 15%. If you repeat the same exercise for 10-year holding period, the story broadly remains the same with one important caveat—in this case, there are periods of negative returns for lump sum investments. For instance, the holding period return analysis for five-year periods shows that there are several periods with negative returns.

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History of this topic

Here's what to expect from short- to medium-term equity investing
1 month, 3 weeks ago

Here's what to expect from short- to medium-term equity investing

Live Mint  

Equity as an asset class is undeniably volatile and cyclical. Short term : Over a one-year and two-year rolling period, the Nifty 500 TRI generated negative returns only 13-18% of the time, while it delivered positive returns 82-87% of the time. Medium term : Looking at three-year and five-year rolling returns, the index generated negative returns only 1-5% of the …

What is the ideal investment time horizon for mutual fund SIP?
2 years, 4 months ago

What is the ideal investment time horizon for mutual fund SIP?

Live Mint  

Almost every investor is familiar with the term 'invest in SIPs for the longer term'. Giving an illustration, WhiteOak data shows that the average return in a 3-year SIP period is around 12.9%, while the median return is around 11.9%. If the SIP period is for 8 years, the average and median return comes to around 16.3% and 14.1%. In …

Opinion | Systematic investment plans don’t reduce the risk of investing in equities
4 years, 9 months ago

Opinion | Systematic investment plans don’t reduce the risk of investing in equities

Live Mint  

When it comes to investing, there are no certainties. Thus, the risk of landing in the worst return range actually increases for SIP compared with lump sum for 15-year holding period. Investing through a monthly SIP, say, for a period of 10 years, will not be a substitute for making lump sum investment of an equivalent amount at the start …

Time for an investment review
4 years, 10 months ago

Time for an investment review

Hindustan Times  

As the economy gradually springs back into action, it’s time you took stock of your financial investments. Liquid mutual funds are a great option, as they offer safety, liquidity, and decent returns compared to a savings bank account. Invest in equity through mutual funds If your risk profile allows, it may be a good time to shift some investments to …

Right time to start investing in equities for the long term: Experts
4 years, 11 months ago

Right time to start investing in equities for the long term: Experts

Deccan Chronicle  

New Delhi: Indian stock markets have seen significant downtrend in recent weeks, amid the coronavirus pandemic tightening its grip in the country, but experts believe it is the right time to start investing in equities through SIP route for the long term as the current valuations are juicy. Yes AMC CEO Kanwar Vivek advised to stay invested in the markets …

What's the right holding period for equities? Find out here
9 years, 8 months ago

What's the right holding period for equities? Find out here

Firstpost  

In short, ten is the number that works for you when it comes to equity investments. According to a article published in Business Line on 20 July, if you want to avoid losses in equity you need to hold on to your investments for 10 years. To avoid losses in equity investments hold on for a minimum ten years. The …

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