How to achieve your best investment performance with long term funds

Sunday, Apr 10, 2022

The best way to wealth creation is long term investing. This statement is the truth of equity markets that most people don't want to accept. Equity markets are a space where slow and steady always wins the race.

Anyone hoping to multiply money 5-10 times in a short period is in the wrong place.

We need to understand that return expected will always be linked to the risk taken: the higher the risk, the higher the chances of greater return.

With the amount of risk taken in equity markets, the return will never be 5-10 times in the short term.

Warren Buffet, the billionaire and the ideal investor for many, is a long term investor. He made most of his money after the age of 70.

Why is that? That is the power of compounding. Compounding is a great way to build wealth as long as you have time.

Simply put, compounding is earning a return on return. So the more time you have at your disposal, the more likely you are to end up wealthier.

Hence, Long Term Investing.

Even if a prospective investor understands these concepts, the main issue arises when choosing where to invest. This is where Portfolio Management Services(PMS) comes into play.

Sticking to your core principles of investing and not deviating from them quickly under the pressures of the markets is what makes for a successful investing experience.

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