Adjust The Sail To Sway The Wind

According to International Monetary Fund’s latest advisories, India is experiencing an economic slowdown serious enough to affect global growth. Does this mean your investment returns can go down and equity returns in particular, could be in the negative? Yes. That’s the fact.  But, does that mean you should stop investing in equity? Well, the answer is no! To understand why it is important to keep investing in equity, we need to know how it works. Equity prices are volatile in the short-term. In any given year, stocks might lose or gain a lot. But in the long-term, the volatility smoothens out; over a very long term, returns from equity, outrun debt, real estate and even precious metals. Every serious investor must have an equity component in his or her portfolio. Best results come when investors hold for at least three years and preferably longer. This is lesson...