Investing is for the long term and there are far more enjoyable things to do in life than to worry about market fluctuations in the short term. When you invest in equity and growth-oriented portfolios, you need to do it for the long term. Try not to worry about what might happen in the next month, six months, one year or even five years (easier said than done, I know).The short term market performance and its long term growth prospects can never be perfectly aligned.The Sensex has given a CAGR return of 15-16% over the last 43 years.It does not mean that Sensex has risen by ~15% every year.The journey of Sensex from 100 to 65000 has been nothing short of a roller coaster ride.If you decide to ride the roller coaster then make sure to remain seated and hold tight till your ride gets over.If you get frightened and decide to jump off mid-way, then the results will be disastrous. And that’s what happens with most investors who quit mid way through their investing journey.There will always be some headwinds and challenges in the economy and markets in the short term.But if you base your long term investment decisions after getting biased by short term market movements will you ever be a successful investor? 99% of investors do this mistake and exit their investments at the wrong time.In order to become part of the 1%, you’ll have to quit doing things that 99% unsuccessful investors do.Look at the different time horizons and the performance of BSE SENSEX in each time horizon.
The investment journey of your life
