Recently, acompany announced how one of their had grown 100 times over 20 years. Unfortunately, less than 10% of their investors would have stayed invested for that period.
When peoplein equity, they tend to be affected by short term fluctuations. TV and newspapers headlines make it difficult not to be. Market movements play havoc with the mental states of most investors.
So, is there an easy way to give your equity investments the time they need?
Yes, but you probably think of it as an annual ritual rather than an ““. We are talking about tax saving . It is meant to provide a deduction under Section 80C of the IT act and you can up to Rs. 1.5 Lakh through these to lower your . Because of this, they are also locked in for 3 years – meaning that you cannot withdraw before that – even in an emergency.
This lock-in can prove to be a boon for you as an investor learning to give your equitytime. Your gets 3 years of uninterrupted time to grow. Even if markets bounce around in the short term you can’t do much about it and hopefully you will learn to let your be.
Starting your equity journey with tax saving funds is a smart way to learn how to in equity for the long term (the only way there is).126