What is the benefit of long term investment in stock market ?... What do i do if i see a fall in the market ?

Answer 1

The long-term average returns for the stock market average about 7% to 8% per year. There will be times, such as 9/11 that will cause the stock market to tumble. This would be a good opportunity to buy because the market can overreact. Look at how well the market has performed since 9/11. If you would have invested more money after this even, you would likely have realized very nice returns. The key to investing is be patient and have a well-diversified portfolio of companies that generate good cash flow and dividends. The stock market will generate yields better than bonds in the long-term.

Answer 2

Theoretically, a long-term investment (arguably, 10 years or more) will return a profit once taxes and inflation are debited. This has been the case over a very long period of time. How much of a profit the market will generate depends on a number of variables, and there have been 10-year periods during which the overall market return has been so slight as to make an investor question the wisdom of putting money at risk by purchasing common stocks. But studies have shown that even during the worst long term periods for the stock market, its returns have been superior to those of other investments that are liquid and readily available. Specialized knowledge of real estate or precious stones, for example, might seem to give the lie to the foregoing, but for most people these are not viable alternatives. Keeping assets in cash or bonds over the long term has not produced enviable returns. Unless you have a particular financial expertise, your best chance of accumulating some degree of wealth over time (for tuition, let us say, or a house, or retirement) may be an investment in the stock market where, for a management fee, you can employ an "expert" to manage your portfolio.

A fall in the market represents, to some, an opportunity to buy shares at a lower price than was formerly available. To others, it represents a warning that your money is not invested to best advantage. In other words, it depends. The overall market will fall at times, bringing down even the most promising stocks. There are economic cycles which produce such an effect, just as some cycles will raise stocks whose prospects are anything but assured. You have to know what you are doing, or have your money managed by someone in whose judgment you have confidence.

Answer 3

The benefit is less trading costs/brokerage fees. You also don't pay capital gains until you sell the stock and so that many is also working for you for a long time. Normally you would sell a stock and if you have a 50% capital gains tax (like I do) then half of your gain is instantly gone anyways. I'd rather keep that money invested, rather than pay taxes, and have that money that would go to taxes instead working on making me more money. It can't make me money if I pay it to the government. The market will go up and down in the short term. But you can probably predict the long term direciton of a good company. Don't worry about the short term ups and downs so much as long as the company remains competitive and financially sound.

If the market falls, if you have invested in a sound company, that just means its time to buy more!

Answer 4

When u hold a Share for a year or more and then sell it out, U are suppossed not to pay even a single rupee as the tax, as it is called Long term Capital gain and is tax-free.
Other issue, Long term investments in stock market has always given god return to the investments. Regarding fall in the market, there are always up and downs in the market, Also take care to take the advantage of Ups and Downs of the market
U can mail me for more details.
THANKS

Answer 5

If you think the market might fall, you can buy defensive stocks. You can buy the gold ETF, GLD. or silver, SLV. Or a mutual fund that shorts the market, meaning it goes up when the market goes down, GRZZX. Here is a portfolio of defensive stocks:

http://www.top10traders.com/ViewPortfolio.aspx?userID=14

This link is from http://www.top10traders.com - this is a free site that lets you create a portfolio of stocks with $100,000 in "play" money. Each day the site ranks the best performing portfolios, so you can see how your picks perform compared to other investors. You can also read posts on investing from the best traders, as well as share your own investing ideas. There is also a charting feature , so you can see how your portfolio performs compared to the S&P 500.

Here are this month's best traders:

http://www.top10traders.com/Top10Standings.aspx

Good luck.

Answer 6

an prolonged time in the past, i began out with much less, approximately $a hundred and fifty if I remember properly. regrettably, $a hundred and fifty then grew to become into well worth so lots extra suitable than $500 at the instant. Our marvelous government at paintings. you have countless techniques. a million. you could analyze shares and %. one which you think of could do nicely. Many traders desire this technique, I too. this is a helpful journey to purchase $500 well worth of inventory and a 12 months later locate that this is now well worth $1000 or maybe much extra. regrettably, you're able to additionally locate that this is well worth $250 or perhaps much less. befell to me many situations. 2. you're able to make investments it in a good mutual fund or an index fund and forget approximately approximately it. perhaps is 30 years that $500 could have grown into $10,000. It does happen. I certainty this is not uncommon. i could have been a techniques extra suitable off if I had executed that with my first $a hundred and fifty investment. Heck i did no longer additionally know approximately mutual money decrease back then. And there have been no such ingredient as index money. in certainty decrease back then there grew to become into in straightforward terms 3 ideces. Dow Jones Industrials, Rails, and Utilities. Now there are hundreds. ok. Now to respond to your question. My favorites at the instant are CHL and GRMN. I even have been procuring the later like mad. Already very own various the former.

Answer 7

buy fundamentally strong companies such as infosys, wipro, satyam, tcs, l&t, siemens, abb, ar.td, bhel, acc, gujamb, ivrcl etc at correction time say 1000/1500 points index down at present level. buy for long term. do not see every day stock prices. forget and sleep well. at least your investment grow 8 folds in 8 to 10years

Answer 8

Dividend stocks good income check out ACAS