By Equity Market Insights
– Investments held for more than 5 years. – Examples: Mutual funds, real estate, retirement plans.
– Investments held for a few days to 3 years. – Examples: Fixed deposits, money market funds, and savings accounts.
– Long-Term: Typically more volatile but can offer higher returns. – Short-Term: Lower risk but limited growth potential.
– Long-Term: Compounds over time, providing significant growth. – Short-Term: Provides immediate but smaller gains.
– Long-Term: Lower liquidity; funds tied up for years. – Short-Term: High liquidity; easy access to your money.
– Long-Term: Ideal for retirement, education, or large purchases. – Short-Term: Great for emergencies or short-term needs.
– Long-Term: May offer tax benefits over time. – Short-Term: Gains taxed as per your income bracket.
– Assess your financial goals, risk appetite, and investment horizon. – Diversification is key—balance both for stability and growth.