Time is the best friend of your Investment.
People have interesting and myriad financial goals. Everyone wants to make money through their Investments. Let’s call this wealth creation goal. Now when you are young we expect you to be ongoing buyers of investments through market fluctuations. Instead most of the investors illogically become euphoric when stock prices rise and unhappy when they fall. People are confused and react to market volatility knowing well that this money is needed after decades.
Surprising the same people show no such confusion when buying food and groceries. You need food for your lifetime. That’s why good investor is one who can control his/her emotions by not getting carried away with market fancies.
People generally ask what is risky – FD, Bonds, Gold, Real Estate or Equity?
The Answer is definitely Equity.
But the right question should be what is more risky in terms of inflation and taxes???
Well, well; is your answer the same?
Years it takes to double money in:
Taxed FD – 14
Bond Funds – 8-10
Equity Funds – 4-5
Yet we stay invested longest where the speed of our money’s growth is the slowest.
GIVE YOUR EQUITY INVESTMENTS TIME and see the magic of compounding unfolding.
Have a super weekend.