The case for long term equity investing in three charts

Using Nifty data from 1999 to 2015, here are three charts that make a strong case for long term equity investing in Indian equities. 1. Longer the holding period, higher the aggregate returns Holding stocks for under a year is not very lucrative, and holding for five years lets you almost double your money. Note how holding for another five years after that more than triples your money. All hail the power of compounding 2. Longer the holding period, lower the volatility Chart 1 shows the absolute return which predictably goes up with increasing holding period. However, with increasing holding period, the uncertainty

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