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Will equity funds still give good returns over the next 10 years?

Equity funds will do well in the long term, provided that you have a plan, learn from your mistakes and don't repeat them, advises Dhirendra Kumar

I have already lost a lot of money in equity. Do you think equity funds will still give good returns in the next 10 years?
- Jasmeet Singh

I am very hopeful and confident that equity funds will give great returns in the next 10 years. But I think you should not miss the opportunity of learning from the loss. Try and figure out what happened - did you invest a lump sum at one go? Or did you become greedy in a very narrow point of time?

I feel that many investors face losses but you can marginalise your losses by having investment plans, such as staggering your investment in equity, making sure that you are diversified and making sure that you are not trading in the derivatives or you are not speculating in the equity market, which also has become very easy.

So, if you have a plan, you can reduce your losses. I am confident that equity markets will do very well over the next 10 years, but I don't know what exactly will do exceedingly well and what will do very poorly. There will be ups and downs. If you come only at the uptime but don't invest through the downtime and if you don't invest in good companies or a good portfolio or a good mutual fund, it won't work. So, having a plan, sticking to it and understanding it a little bit is important. I would say that devise a plan, make sure that you have taken the lesson from your losses and make corrective adjustments to your plan so that you don't make the same mistakes again. This is because to make money you also have to make sure that you don't lose a lot of money.