The Investment Planner’s Guide To Long-Term Success


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Investment planning is an essential aspect of financial planning and wealth management. There are mainly three important areas to keep in mind looking to hit long-term investment goals. 

  • The first of these is understanding the structure and benefits of long-term investing. 
  • The second is developing the right mindset to avoid common pitfalls and anxiety the average investor faces. 
  • Lastly, knowing which investment instruments to invest in while keeping a diverse investment portfolio. 

So, follow the steps in this article and begin the journey to becoming your own financial planner!

The Importance of Long-Term Investments

There are numerous reasons to detail a strong long-term investment program. Foremost among these is the high return an individual can get through a small investment. This is because investments that are locked in for longer periods have a higher compounding rate. Therefore, an investment with a 15-year lock-in period will yield considerably higher returns than an investment with a 10-year lock-in period if we assume the initial amount invested to be the same. Keeping money in investments for long periods allows one to ignore short-term volatility. In the long run, stock price patterns are far more predictable than in the short run. 

Another reason to invest in long-term investments is the tax benefits you can receive on returns. Short-term investments tend to be more heavily taxed by governments and incur more costs than long-term investments in terms of commissions, taxes, etc. Therefore, long-term investments are a good option as they offer higher returns at lower risks than other investments. 

Guidelines for Successful Long-Term Investing

Investing can be a nerve-racking endeavour, full of complexities and uncertainties. In the domain of long-term investments, here are some tips that can help you navigate your way through this minefield. An important tool any investment planning requires is patience, and it is doubly so for long-term investments. 

As already mentioned, the compound interest factor on long-term investments means that holding onto an investment for a few years longer can result in significantly higher returns. It might be tempting to sell your investments in assets that are performing well. However, playing the waiting game can ultimately be twice as rewarding. 

Consult a financial planner on when to sell/hold a poorly performing asset. In many cases, a poorly performing stock’s recovery depends on several factors. It would be beneficial to have the opinion of a trained expert when evaluating the future growth of current and potential investments. In terms of potential investments, it is important to keep an open mind rather than focus purely on blue chip stocks or other commonly known investment avenues. One way to access untapped potential is to prepare oneself with adequate research and assess each investment opportunity based purely on merit and future potential.

Another important aspect to remember is prioritisation. It is better to focus on potential returns rather than tax benefits when making long-term investments. While tax benefits play a role in the investment market, securely growing your money should always be your top priority.

Also, Explore more about How2Invest and get your investment journey started.

How and Where to Invest?

The answer to ‘how’ is to maintain a diversified investment portfolio. In investment planning, dividing up investments amongst various asset streams is the safest way to progress. Placing all one’s investment budget on a single asset that does not perform is a high-risk strategy with little reward.  

In terms of ‘where’ you can invest, there are multiple options that allow for a diverse investment portfolio. Here are some of the assets commonly invested in on a long-term basis:   

  • Equity Mutual Funds: Mutual Funds are a common go-to for many because your investment strategy and assets are managed by trained financial experts. Mutual Fund experts target diverse lists of assets, such as stocks, bonds, equity, government schemes, and gold.
  • Stocks: There are three options in the long term: blue chip stocks, dividend stocks, and growth stocks. 
  • Retirement Plans: Given the duration of long-term investments, retirement plans can appear a popular option to many. In this stream, there is little to no risk of market volatility, while the benefit of compounding on the invested amount is ensured. There are three types of retirement plans: Annuity PlansUnit Linked Insurance Plans, and National Pension Schemes
  • Real Estate: Real Estate can play a significant role in long-term investments. This is because monthly income yielded by property tends to beat inflation in the long run. This means that as rental incomes increase, the valuation of the property increases as well, making it a profitable investment venture. In real estate, obtaining a monthly rental also offers a valuable source of passive income.


Remembering the points discussed in this article can help your future long-term investments become more profitable and less arduous. Long-term investment has many benefits: lower risks, higher returns, tax benefits, and fewer costs. The most crucial tool in long-term investment is patience. Seeking professional help can be extremely useful in choosing the right investment option and providing a solid basis for your investment planning. Remember to keep a diversified investment portfolio to ensure maximum growth and mitigate potential risks. 

larablogy singhal
larablogy singhal
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