1. Long term investment is like our faith in Sachin tendulkar where when Sachin is out for the duck; we still give him the benefit of doubt and we hope to see him playing another day.

2. Thus the moral of above comparison is that give time for your equity investment to grow. If one is not seeing growth in equity in a single year then make it a point to wait for some time as investment is also like Sachin tendulkar where it may be also passing trough a bad year.

3. Always remember that equity as an investment beats all form of investment in the long run and same is the case with Sachin tendulkar whose long term average beats all players average. Similarily Charles Ellis has said and I quote 'Stay invested through the rough times' and market will take care of your investments. However do undertake introspection of your investments and accept mistakes and divorce a stock if it appears that it was a mistake.

4. As a long term investor avoid panicking in a market fall and try to buy quality stocks in a sale. If one is perturbed by market volatility then remember to park the money in safe heavens like post office monthly schemes and see inflation eating into the investment.

5. Make it a point to invest in equity like a systematic investment plan. Always make it a point to understand the fact that short-term performances of equities do not determines its long-term average.

6. Avoid being greedy and have reasonable expectations from the market and I can assure that it will beat inflation by at least 6% every year when one will see it over a longer term. If one can have cash to spare for 10-15 years one will realise that one has achieved the highest returns. Do not park money in equity if you require the same with in a period of one to two years.

7. Adopt a disciplined method of investment and avoid trading in Futures if you do not want to increase your headaches.


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