#2 Long term investment pays

It is a serious myth that long term investment pays off well. Though it helps for the new comers to get adapted to the investing procedures and learn in the process; while the good investment helps and not the bad investing choices.

Long-term investing can be counterproductive if the fund you have invested in is a poor performer. It is necessary to research before investing for long terms, especially in sector funds.

These tend to deliver at their best when the specified sector is in profits. For long term this highly fluctuating nature can prove wrong for investments.

#3 Systematic investment works

Systematic investments or Systematic Investment Plan enables the investors to adapt to the habit of saving. Apart from giving a good return, SIP instills discipline and consistency in investing for a long term.

Though there are several profits in SIP, sometimes it fails to deliver high returns in regard to heavy investment. This is best suited in times of market volatility, and if equity market views a price rise on a financial market, the returns from systematic investment would lag.

 This feature therefore lags the capability of being called a very profitable-long-term investment option.

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