Value of Long-Term Investing and Asset Performance
As you can refer the chart how long-term investing creates wealth. Wise man rightly said, we should have long term vision to create wealth. As chart suggests of equity that many turbulences come since 1990 to May 2024. Markets seen recession, market seen crash, but as a investor we don’t understand that is going to happen, then we cannot ride the market, cannot do well through all market cycles. To do well in the market, we need patience and should not be taking decisions solely based on emotions.
Mostly we ask from ourself that: how long is long term? As we know holding portfolio more than a year is long term, but we are going to create wealth in a year. Yes, definitely longer the period of holding more the wealth would create. Simply, you give maximum time to the market, generating maximum return. Successful investors and fund managers believe that ‘Time in the market’ rather ‘timing the market’.
Period of Analysis is from 1st Jan 1990 to 31st May’24: Source:
Disclaimer: Past Performance is no guarantee of future Results
To understand better go through the graph, where market since 1990 to May 2024 has produced investment of INR 100 to INR 8352 around 83x return.
Similarly, you can see different asset class return since 1990 to May 2024.