Fixed –Deposits, PPF and any other fixed income
deposit type savings are no longer yielding any ‘real’ (above inflation rate)
rates of return. If you are not getting government pension or rental income
which you can increase periodically, then long term investments must be kept in
equity-backed investments; otherwise you are getting into old age poverty.
The reason for investing in equity-backed
investments is because the ‘ultimate source of profits in equity is general
growth of the economy’. The daily loud noise of volatility is an illusion.
By the way “good companies will ultimately do well”
is a myth. Do not sleep over your portfolio.
Research every five years based on sound scientific principles to
understand the impact of volatility. Review it constantly.
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