Long term cannot be defined in number of years holding. Intention of defining long term is so Investments deliver decent returns for Investors over a defined period of time.
Then what defines this period?
Long term gets defined by valuation at the time of your investment. If you invest when valuations were high, hold for longer period; horizon gets shortened if you invest at lower valuations like investments made in March 2009.
Long Term gets defined by which Business Cycle did one invest in. If you invest in Downward Cycle, long term gets stretched. If you invest in upward trending business cycle, long term can be shortened & vice versa
To conclude: Long Term gets determined by: 1) horizon of your goals 2) market valuations at the time of your investments 3) business cycles post or during your investment journeys 4) long term cannot be defined in number of years
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MisterBond's #RollOfHonour for various #Debt scheme categories for the year ending on March 31'2023.
#IHR - Investor High Returns Score - Higher Returns in Higher Bands #IER - Investor Experience Returns Score - IHR divided by Std Deviation #BI - Beating Industry Average
MisterBond's #RollOfHonour for various Equity scheme categories for the year ending on March 31'2023.
#IHR - Investor High Returns Score - Higher Returns in Higher Bands #IER - Investor Experience Returns Score - IHR divided by Stabd Deviation #BI - Beating Industry Average
Hybrid category will start becoming popular with more than 36% in Equity.
Expect more such offerings from #AMCs. Brace for more #volatility in New offerings.
No implications if you continue to hold your existing #DebtPortfolio. Only if you invest fresh funds post 1 April 2023, there will be only STCG like #BankDeposits.
New Fund Offer (NFO) of Motilal Oswal Nifty G-sec May 2029 Index Fund. The NFO opens and closes on 02nd March 2023
Why should you invest in Motilal Oswal Nifty G-sec May 2029 Index fund?
It is a 6 year open ended #DebtScheme - comparable time frame to most popular investment alternative viz. 5 year #BankFD
With likely capture of Gross YTM of 7.40% - again comparable to current rates of 5 year FDs or even better
However, MO 2029 G Sec NFO scores over FDs on many counts: 1. More #TaxEfficient with 7 indexation benefits 2. Similar returns but scope for capital gains if redeemed before maturity (when interest rates soften) 3. Better #Liquidity as it is open ended debt scheme