I have always believed that an Investor should constantly think like an INVESTOR than a TRADER. In this video, I would like to capture important data points on the benefit of staying invested for the long term and how your CAPITAL DEPLOYED plays a major role in the initial years and how it will help you to generate higher returns in the long run!!
In Equity oriented investments, your invested capital is more important than the return that you get on that investment for the first 10 years. After 10 years of staying invested, you can notice the magic of compounding!!
Examples are shown in the video that emphasizes the importance of Capital allocation in the initial years rather than Capital appreciation during the accumulation phase. The difference between the capital invested and the return generated is less during the short term. Post 10 years, Compounding will take care and the growth in the portfolio will make you aware of how the CAPITAL invested will look small compared to the RETURNS Generated!!
Hence, when planning for a long term investment, do not worry about short term volatility as we live in VUCA (volatility, uncertainty, complex and ambiguous) world and it will continue to be VOLATILE in the years to follow!! Do not focus on which product to invest in to maximise returns in the short term rather identify your GOALS and stay INVESTED and reap the benefits of GROWTH and become financially independent!!
To identify your GOALS and to factor in the impact of inflation, do connect for a COMPREHENSIVE GOAL ORIENTED INVESTMENT SOLUTION!!
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