TIPs... but only for long term investors

I have invested in Tax saving Mutual fund with 3 yr. lock in period from reputed fund house like, Sundaram,Franklin,DSP in the month of Dec 2007 when Sensex was around 16000 level,that what is today,But now four year is going to lapse, return are still on minus side. So somebody tell me how I benefited such a long term investment, only minus return ?

Another point to think is the interest rate cycle. While we are nearing the peak of the interest rates, we are still not done with it. We still have another couple of percentage points to go. We should wait till the interest rates have peaked before starting to look at the market for investment.

high return stocks for longterm return

All the stock Gurus advise to buy for long term, but no one really defines what long term is & worse, no Guru tells investors to book profits when valuations are high.

Let us not believe that longterm investment means invest and forget and relax in your arm chair for your successors to reap the fruits. It really means a dynamically managed portfolio with longterm perspective while weeding out nonperforming assets like the banks do for their NPA's.I recommend long term investment strategy with dynamically balanced portfolio by yourself or with the help of good consultant not involved with any fund house or company for his unbiased advice.

Markets are ultimately dependant on liquidity.If there is no money chasing stocks then whatever be GDP growth market cap will not go up.The classic case is the current chinese mkts.The chinese gdp is growing at the rate of 9% but the markets from the top of 2008 i down i think more than 50%.Economy performance and stock market perf has direct timewise correlation.Stocks are another asset class which goes up and comes down due to reflation and deflation.However in the long run if there is a decent performance from the economy stocks tend to outperform other asset classes handsomely.It is the job of these guys to keep recomending investment because their job is dependedant on the retail investor putting money in MF and markets.

i agree with sachin. The long term investment may be myth today. Fast changing tech, ownership and economic turmoil make it unlikely that the business will be there 20 years later. Even the stock expert will not be around 5years later. When the market is down they become loud in telling you to buy to get their commission knowing well that no one will question them 5 years later!

Indian Stock Market is heavily dependent on the monies from FIIs. The value of a company is decided by FIIs and not by their performance in terms of PBT, Historical track record, Management quality etc. When I started investing in equities in 2007, the Sensex was about 14000 and booming, was even expected to cross 50000 in a matter of 5 years which many prophets of stck market termed as long term. Now 4 years later the Sensex is stuck at 15000-16000 levels. My friends, don't listen to these Stock Market gurus. They will say invest, invest..because if we don't invest they will be out of business.

It is easy to put suggestions and recommendations by experts, but it is very difficult for an investor to sit and watch your investments vanishing in front of your eyes within days. No company is immune from this volatility. I never found real reason for one company’s value crashes 40-50% irrespective of their good performance within days.
Most companies crash when market crashes irrespective of their name, stature, management, performance, or for their future perspectives. They come up when everyone has returned to buying mood. The equity market seems like a learned game; few are benefitted by this volatility. One who knows how to play this game effectively wins. Equity market is no more long term investment.

I do not understand the meaning of long term. Is it 2 years or 5 years or 50 years? GDP has doubled in 5 years. Stock market has not doubled in 5 years. Sensex 11000 in 2006 has become 16500 in 2011. India is seriously short of companies with good quality on management. We require qualitative change in management style, Ownership structure, PSU unfair competition, insider advantage etc to go to next level. Otherwise we will eternally struct in the range 13000 to 18000 like DOW and Nikkei.