While short-term investment focuses on capital preservation, long-term investment focuses on wealth building. It is all about building an investment portfolio that will give you income in the long run, whether for retirement or to satisfy any other long-term financial objective. It is essential to build money to sustain the amount of income you will need in the future. However, a measure of risk is required with investment options to reap profits. It often comprises equity investments, ULIPs, and other similar products. On the other hand, riskier investment options provide a possibility to recoup from market dangers if you remain involved for a more extended period. It may fall by 20% in the next three or five years, but it may finally produce double-digit returns in the following ten or twenty years. There is less risk with assets, but the rewards are either fixed or sluggish. As a result, while considering long-term objectives, you must allow yourself a chance to overcome short-term declines to achieve the required returns. Also Read: Where to Invest for Long Term Investment in 2022
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About Author:Aman is working in the domain of Investment management in one of the top universities. He has published research papers and case studies in Investment and Fixed Deposit marketplace. He is an avid blogger in the domain of Investment management. you can also find him on social networking platforms. Archives
August 2022
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