When a stock is invested for a long time, it is called long-term investing. By Long Term Investing, we mean the way of trading in the stock market in which an investor holds a stock for 6 months to a few years.
The investment remains in the same stock.
Example
Some examples of long-term investing are as follows-
1. Investment more than one year,
2. Investment from one year to three years
3. Investment from one year to five years
4. Investment for five years or more
Trading done in such time frames is called long-term investing.
What to do for investment
If you make a disciplined investment in the stock market and keep an eye on the market, keeping in mind both the fundamental and technical aspects and keeping the future economy in mind, by choosing good stocks, you can earn good profits in the long term. For long-term investing, we have to do a fundamental analysis of the stock first, hence if you want to take advantage of long-term investment then you have to understand fundamental analysis well. So that you can benefit from this money-making method of big investors.
Benefits of Investment
If we talk about the benefits of long-term investment, then you do not need to worry about daily fluctuations in the market.
You get tax-free dividends and profits. If you have invested in a company whose market growth is very good in the future, then you get great returns on your investment.
The purpose of the investment is the purpose of trader in Trading - Taking advantage of tax, (investment tax-free of investment tax for more than 1 year in any stock). Taking advantage of
1. Dividend, (some company gives regular dividend on their stocks).
2. If the company's growth is increasing, then there is a great benefit in the long-term investment.
Purpose of investment
The objective of the trader in Long Term Trading is-
1. Avail tax benefits (investment in any one stock for more than 1 year becomes tax-free).
2. Taking advantage of dividends (Some companies give regular dividends on their stocks).
3. If the growth of the company is rapid, then it gets very good returns on long-term investment.
Long-Term Investing and Trading
Technically speaking, there is no such thing as investing in the stock market, we buy and sell stocks, no matter the time difference, be it 1-day trading or 10-year trading. Only trading happens in the stock market, but when we keep the money made after buying stocks in the same company for a long time, then this kind of trading is called investing, not trading.
Long-Term Investment Plan
If you have a lot of savings or you want to invest little by little for a long time so that you want to invest money for your future or retirement, then you can invest your money in these Long Term Investments.
1. Open an account in the Public Providenestate
If you want to invest some money every month safely and risk-free, then the Public Provident Fund is the safest and longest-term investment plan. This is the policy of the government, it can be opened in both post office and bank.
2. Life insurance policy
If you want life cover along with wealth creation, then Life Insurance Policy is the best long-term investment plan for you.
3. Investing in mutual funds
If you want high return along with moderate risk then investing in a Mutual Fund is the best long-term investment option for you.
4. Investing in real estate
If you have a lot of money together then you can invest it in Real Estate. Real estate is a good long-term investment option for anyone.
5. Investing in government bonds
The government keeps issuing Government Bonds from time to time and collects money from the public. If you find it risky to invest money in the market, then you must invest in Government Bonds.
