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Is the concept of long term investment still viable?
Bhavik Jain .

Is the concept of long-term investing still relevant today?🤔

Investments held for longer periods tend to exhibit lower volatility than those held for shorter periods.

The longer you invest, the more likely you will be able to weather low market periods.

But the situation has drastically changed in the last 5-6 months and the market seems to not favourable for any long-term Investment.😔

With the volatile economic conditions due to COVID and the involvement of governments to sustain businesses,

How relevant is the concept of Long-term Investment today?

Is it favourable to invest in Real Estate and Stocks at this point in time?

Originally Posted Here
22 Comments

Deakin Daney

Not real estate. At this level it is prudent to invest in stock market through following

Smallcases
Sip
Debt funds focus on PSU banks

Bhavik Jain

Any reason for this and do you expect the prices of real estate to fall down?

Deakin Daney

would you invest in something which is lock in at this point of time ? I think not. We all want rather we all need liquidity at this stage.

Anshul Dave

Bhavik Jain - There will definitely be a correction in Real Estate sector....a 20-30% dip is inevitable as there is very less liquidity and over supply in the markets

Paras Shah

Real Estate is a costly and illiquid asset class. Considering the current scenario rental yeilds will reduce so the property wont appreciate fast enough.

Equities are a better investment. Safer options would be Index Funds and diversified mutual funds.

As far as long term investing is concerned its not worth it for people who have less capital allocated to equities. Also timing of entry and exit makes a huge difference in the returns you generate. Anybody who exited before March made better than expected returns than who plans to exit now.

Gold ETF is also a good option to invest.

Murali Dhar 

Long term investing is good(equity:stocks), but you should set yourself for how long!!

Bhavik Jain

How long do you suggest one should invest in equity stocks?

Murali Dhar

I'm not a certified financial planner,I took up a basic course abt stock market in long term investments and short term trading.

So how much depends upon your financial goals.

Let's say you want 20L in ten years or something.. you should do SIP According to it,
(You have to calculate how much amount you should do SIP and also return, so that it meets your criteria/goal)

Long term investing is a back-end result,the more time you wait the more it compounds and it gives you greater returns
But again you can't keep them forever,so set your goals say for 10 years,20 years or 30 years and do it accordingly.0

invest in index funds,not in individual stocks

Anshul Dave

Bhavik Jain-85-90% of the stocks in the market are cyclical in nature.....ur holding depends on your risk appetite, liquidity and conviction about the company management. Due to Algorithm Trading, Momentum trades are more in fashion

Ansha Dixit

ChiragM Shrruti Sunil Dhandhania what are your views on this?

Chirag M

Real Estate is gonna take a long time to revive..Stock Market is surely volatile but I personally have grabbed every opportunity of buying blue chip stocks at lower prices than usual. In this market situation only long term investments will prevail..asvolatility is too much for short term. I always believe in Warren Buffets philosophy of be greedy when others are fearful and be fearful when others are greedy. To add how it benefit me i will share on example: in march 2020 Reliance stock hit a low of 900 bucks i bought whatever i could and yesterday it closed at 1950 and looking at their AGM its surely moving towards 2150 target. You have to time the market and most important do your research.

Shrruti Sunil Dhandhania

I believe investment in mutual funds through SIP is a good option..

Yuvraj Maheshwari

Long term investment can be preferable but with a proper watch .
It's good as equities give returns not in short term. The returns are more than 15-20% as given in long term.
Real estate can be also good investment but it depends on area and usage .
If for short funds purpose then investment can be pref in pure liquid funds that give daily returns without exit load they give on an avg 9% p.a.

Arokya Inian

Stock Market - a crash is due anytime, buy then
Real Estate - go for Tier2 and Tier3 cities/towns

Prathamesh Baheti

Whats the point of talking about long term investing if you judge them by these 5 months?!

Pranav Agarwal

I think long term risk investing should be done in equity

Active or passive investing is dependent on time and some ability of the investor.

Ayush Gupta

After the Outbreak of Corona Virus , The Nifty has dropped from 12000+ to less than 8000 in March. If we compare the Trends from 2008, We can easily see that with time the Nifty will go up and so do the Value of the Mutual funds (If the money is properly invested after doing due research). Currently Nifty is 10000+ so people who have bought funds in March , April , May this year must be seeing good returns so far in terms of Money invested. As we know , It's always good to buy shares when the Market is down as you buy more shares in less price. I would suggest Index funds Mutual funds to invest if we don't have much time to do daily research and Monitor. Mutual funds will definitely give good returns in long run if you consider a horizon of 5+ years.

I am not really in favor of Real estate at this time as the Price of real estate is not increasing in tier 1 cities but can be invested in tier2 and tier3 cities after doing complete due diligence.

Sooraj Kumar R

The Covid situation (or any similar one) is the greatest time to look at diversifying our investments.

Agni Chatterjee

Let's make a small pushfund say , per person 20k pops. We can test out theories in action.

Nipul Jain

Buy REITS atleast you will diversify your fund across Real Estate's

Prathamesh Baheti

Ye sab kaun sikhaata hai tumhe?
Investments held for longer period tend to exhibit lower volatility than those held for shorter period? This is an absolutely wrong statement.

I am guessing you are talking of equity investments as long term. The results you want depend on where u invest. If you want lower volatility thats different from having better returns!

And if you are really invested for the long term then this low market period is what your portfolio will move on with. If you expect your investments to not fall when the market does, then its wrong. You have got it all wrong.

Long term investments in equity are just as relevant as short term. And it always will be🙂

And low market periods are the best to build such valueable portfolios!

Prashant Gupta 

Yes

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