What is Better long term Investment or Short term Investment or Trading?

A basic question comes in mind when an individual is new to the Stock Market.

Long term investment requires patience, commitment, and keeping calm when the market fluctuates. A long term investment is an investment that has a higher probability of maximizing your return over a 10 year period or more (long-term investment goals can be buying a house, retirement planning or children’s education or Marriage).

There are options for investing on a short-term basis (Short-term goals can be Own Marriage,Family Travel,Small function or buying a car etc.).A short term investment is an investment you expect to hold for 3 year or less. While many people try to play the market or speculate with day trading. But it is a risky business and one should educate himself /herself or consult an Expert before trying day trading or short-term investment.

It totally depends on your own personality, go with what suits your style.

Long-term investment instruments are Mutual Funds and Bonds – government and corporate, which would yield moderate but steady returns. Long-term equity investments can be highly profitable.

Short-term investment instruments are Mid cap shares and money-market mutual funds that fetch higher returns in a shorter period. Even Large cap shares can be profitable.

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