The point of this article though is to make sure, that irrespective what you think your definition of “long-term” is, you don’t do the following when linking your goals to equity mutual funds.
Satyam PatiSatyam is part of Team Scripbox. He is a NSE certified market professional and investment analyst. He is an active equity investor and loves to talk about and explore different ways in which people can increase their wealth, practically.
At the risk of sounding pedantic, I would like to remind my fellow investors of only one thing. Equity is ownership of companies involved in the economy of our nation and the world. Many of the companies you and I own indirectly through equity mutual funds have seen terrible times that many of us aren’t old enough to remember.
When I started investing myself, I too believed in these metrics blindly and chose based on that. It took many years of learning and real-life investing experience for me to realise a subtle truth. That truth was simply that growth rates matter but they are still subservient to one key factor which is much more in your control than the markets.