Niranjan Avasthi, Senior Vice President and Head of Product, Marketing, and Digital at Edelweiss MF, stressed on the necessity of aligning one’s investment horizon with the chosen asset class.
“Whether it’s fixed deposits, gold, real estate, or equities, the investment horizon must match the return potential and risk of the asset class,” Avasthi told CNBC-TV18.
Avasthi further explained that within the realm of mutual funds, the investment horizon plays a pivotal role.
“Equity investments require a long-term perspective, while debt investments can be approached with a shorter timeframe,” he added.
Similarly, Kshitiz Mahajan, Co-Founder of Complete Circle Consultants, echoed these sentiments by underlining the significance of setting investment goals.
Mahajan emphasised that without a clear destination in mind, investors might overlook the benefits of compounding.
“Aligning your investment with a specific goal ensures that you leverage the power of compounding, which is indispensable for long-term success,” Mahajan said.
In essence, the consensus among industry experts is clear: having a goal and a time frame tailored to the chosen asset class is crucial for maximising returns and achieving financial objectives in the world of mutual funds.
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(Edited by : Anshul)
First Published: Apr 30, 2024 11:07 AM IST