At the moment liquid funds are delivering an annualised return of 5.5%-6%. This is lower than the 6.5%-7% seen a year ago. However, it is in line with the downward trending interest rates in the economy. If you are feeling disappointed with these returns and think that its better to move to a higher return fund or leave money in the bank itself, first read through the points below and then decide what to do.

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.

Ideally, you shouldn’t be concerned about portfolio returns every now and then. Of course, in times of extraordinary market movement, you will want to see what happened but, looking at your portfolio returns too often can be detrimental too.

The recent recovery in market prices, might signal hope, however historical experience has taught us that bear markets can continue for much longer. What’s important is the need to take this period as an opportunity to build future wealth, rather than letting fear take over.

With the scenario worsening, there is one question on top of every mutual fund investor’s mind – Is it a good time to invest?

How much longer do you need to be invested for long term returns to look reasonable? How long should a long-term portfolio continue for?

The Indian markets have reversed much of the recent gains seen till February, rather quickly and you may have seen your gains made over the past years shrink in a matter of days. And that makes you wonder what will happen to your money?

The future trend in the stock market will finally get defined by the aggregate earnings expectations from individual companies in an economy.

Often charity is considered from our leftover funds, but you can just as easily convert that into a goal. Use the same concepts of wealth creation, start early, and stay for long periods.

There are many such examples of risk-return trade off which we make consciously in our daily lives. In investing too there are varied types of risks, to achieve your return you have to know which ones to take and which ones to avoid.

To know how you measure up on the investing behaviour graph, see if you conform to behaviour aspects given below.

Meet Ramkumar, MD at Avi Networks India Pvt Ltd, a Scripbox fan, and a passionate marathoner who recently successfully completed the Berlin full marathon. Read on as he shares his unique experience of training for marathons, lessons learnt and how the same principles apply to long term wealth creation.