Long Term Investment
Long Term Investment means assets or any other securities held for more than a year or longer is called Long Term Investment. It is mostly safer than short term Investment. Many people investing in the market for future goal and maintain a portfolio as per their risk appetite.
We are also encouraged every individual to start invest in the market at an early age and keep long term outlook and know the power of Compounding. Before investing in a company, Individual must know various term about a stock Market which is appended below:-
- Know your Company
- Market Cap
- Book Value
- PE Ratio
- Sector PE Ratio
- Dividend Yield
- Balance Sheet
- Profit & Loss Account
- Return of Capital Employed
- Return of Equity
- Face Value
- Sales Growth
- Cash Flow
- Ratio
Tips for Long Term Investment
There are Following tips for long term investors which are beneficial to achieve long term goals with calculative risk.
- Do Proper Research
- Don’t panic in Short Term Price Movement
- Don’t invest in Penny Share
- Use Fundamental Analysis
- Use the Technical Indicator
- Portfolio Diversification
- Evaluate Market Situation
- Sector Analysis
Long Term Investment Products
- Stock Market
- Mutual Fund
- Exchange-Traded Funds
- Bonds
- Tax Saving Scheme
- Public Provident Fund
- Real Estate
- Gold
- National Pension Scheme
- Fixed Deposit
- Senior Citizen Saving Scheme
Advantages of long terms goals
History of Good Gains
It has been historically found correct in many cases that long term investments have always paid off the good returns.
Tax Saviors
These investments have been charged with less income tax as compared to the short terms investments since these are taxed at the rates lower than regular income tax brackets.
Reduce Transaction Cost
Long term investments reduce the transaction cost drastically as compared to the short terms investment as it doesn’t have many numbers of transactions as we have In short term investments.
Long Term Investment Option
In this type of security, a long-term asset can be held for as little as one year or for as long as 30 years or more. Generally speaking, long term investing for individuals as often thought to be in the range of at least seven to ten yrs of holding time. First off all describe the word of “Long term Investment”. We just say about it’s a dream to every individual or company those who see the dream to achieve future goal i.e. how that’s an investor will become to maintain a happy life of journey according to society as well future environmental conditions. It is investment is supposed to be the holder for depending security. It should two types first of Company and second is individual. Long term investments period considered minimum one year or as long as 30 years or more. Its range of period at least (7 to 10 Years). Most of the common short term investment option is under below-
• Stocks
• Mutual Fund
• An exchange-traded fund (ETFs)
• Gold
• Real estate
Stocks
The word stock represents “Share” or “Equity”. It’s just like a part of security that should signify proportionate ownership. This is a powerful tool where investors desired to invest in the fund. Stock investment plays an important role in the development of the economy.
It’s nothing but represents part of ownership in a corporation’s. It’s an equity investment & represents a role as earnings assets. As per the past time, shareholders have to be received a paper stock certificate that is called “Security” but in this day it has been total change and major it’s a number i.e. a number of the share they have.
Mutual Fund
According to my point of views you all are aware very well about Mutual Fund. I Just remind you about Mutual fund as a slogan” ‘Mutual Funds Sahi Hai’ In this days this is very famous to understand about itself. i.e simple concept is your aim should be determined as investor requirement. It is also a type of investment consisting of a portfolio of stocks, bonds or other securities. The most important advantage of it provides us with a small/individual investment & easy to managed professionally portfolios at a very low cost.
Exchange Traded Fund (ETFs)
An ETF is a marketable security that tracks an index a commodity, bonds, or a basket of assets like an index fund. Unlike mutual funds, ETF trades like a common stock. It is an investment fund traded on stock exchanges, an arbitrage mechanism designed to keep it trading close to its net asset value, although deviations can occasionally occur.
Gold
Investing in gold is a safe investment, it is not like buying stocks or bonds. Here, we take physical of gold by either gold coins or gold. Gold is very popular in this world because of its value and rich history, which has been interwoven into cultures for thousands of years. It’s an important part of an investment portfolio. It has always maintained its value over a long term period & focused Exchange-traded funds (ETFs), & other financial instruments.
Real estate:-
God, Really it’s a part of the achievement of life for every human being who have to see their dreams. Yes, it is just like a dream whenever we thought that our mind has to determine that when we become a landlord. Whenever an investor should think to invest in real state, the first probably comes into his mind is own home. However, real estate has become a popular investment vehicle over the last 50 years.
Conclusions:-Yes, we all are desire to maximize our capital for which we invest in long term investments scheme they would be provide us with a maximize return. Long term investment in accounts a company plans to keep for at least a year. The main objective is to be the expected rate of return.
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