Ask Value Research

What precautions should a long-term investor take?

Dhirendra Kumar lays down three safety measures that should be taken care of while investing in the long term

Dhirendra Kumar lays down three safety measures that should be taken care of while investing in the long term

हिंदी में भी पढ़ें read-in-hindi

I have invested in Canara Robeco Emerging Equities Fund. Is this a good choice? Also, what precautions should I take while investing for a time horizon of 15-20 years?
- Santosh

This fund has proven to be a good performer and has been doing well consistently as compared to its category. I feel that its performance would be a big relief for you. So, nothing actually needs to be done.

However, during your investment journey, you must take three precautions. First, stick to your investment even when the headlines are negative and be at it no matter what. Second, try to ensure that your SIP contributions keep pace with your rising income. For example: If you start an SIP of Rs 5000 today and continue investing the same amount over your investment horizon, then it may not serve any purpose. This is because the value of Rs 5000 after 15 years will be different from what it is now. So, as your income rises, make sure to increase your SIP contribution. Third, every three years from now, review your investments and notice whether the reason behind selecting a fund still hold relevance.

This article was originally published on November 11, 2019.

Ask Value Research aks value research information

No question is too small. Share your queries on personal finance, mutual funds, or stocks and let us simplify things for you.


Other Categories