The day I landed on the forum, I have been hooked to it. I religiously visit it everyday and have gain a lot on each passing day. It has given me great insight into my financial world which was previously completely ignored.
Well, of many things that I learnt, one was that equity funds is definitely the best instrument when you have a long term goal to achieve. [Long term ~ 15-20 yrs].
Since, I am still quite naive in the area and trying to understand and build a portfolio for myself [after buying a term plan, a PA, and a mediclaim policy for self and family], but then when I come across opinions like below, I lose confidence and forces me to think that PPF/FD are best instruments (as my parents suggests)? Pls. give your expert opinions.
“I have been a die-hard fan of equities for 2 decades..but not anymore. The old wisdom that equities are good in long run does not hold good anymore. In the past, the world was not integrated as much as it is now. Somewhere in the world, there would always be some bad news every other day…and the nervous market will will go down. Then the market will rise again based on local fundamentals..but go down again due to some global news. Also, coalition driven politics in India will make sure that every other day, there is some bad news. Some regional politician will blackmail the central govt. and hold important decisions. So how can equities give good returns even in the long run when the returns are no longer driven by the fundamentals of the stocks that we invest in? It is better to get 2-3% less in debt and sleep well. A small erosion in wealth is much better to live with than a serious threat to the entire wealth”