How long should I hold an equity fund for best returns?
-Vijay Singh
As long as possible. Ideally, to derive decent returns from the risks that you undertake, equity investments should be for a period of at least 5 years. The money that you're unlikely to need immediately should be earmarked for equity. The other important aspect of reducing the risks associated with equities is investing via SIPs. Spreading your investments over time helps you eliminate the risk of catching a market peak.
This article was originally published on September 27, 2012.