Case Studies in Successful Investments
                     Case Studies in Successful Investments
INTRODUCTION
• The strategies followed for long-term investing 
are different from the ones for short-term 
investing. Some asset classes deliver better 
risk-adjusted returns over the long than those 
usually doing well during the short term. 
• Long-term investment horizons also allow the 
investors to take greater risk as longer time 
horizons allow investors more time 
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ALIGN YOUR INVESTMENTS WITH CLEARLY SET 
FINANCIAL GOALS
• Every long-term investment that you make 
should have a life goal associated with it. 
Doing so will give you a clear estimate of the 
size of your financial goals and the time 
required to achieve them. 
• A clearly set goal with a defined time horizon 
would let you to find out the monthly 
contribution required for creating the 
corpuses, set an asset allocation strategy for 
each of them and help in making security 
selection.
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 START INVESTING EARLY
• Starting early inculcates financial discipline 
and assists you to benefit from the power of 
compounding. 
• Due to the power of compounding, the gains 
generated from your investment start to 
generate returns on their own, thereby 
yielding a bigger corpus over the long run with 
much lower investment contributions.
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INVEST IN EQUITY FUNDS
• The best instrument available to retail 
investors to benefit from equity is to invest in 
equity funds. 
• Equity funds offer their investors the key 
benefits of professional fund management, 
adequate diversification and investment 
convenience at a very low cost. 
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OPT FOR THE SIP MODE
• Investors lacking the skill to time their 
investments should opt for the SIP route while 
investing in equity funds. 
• Taking the SIP route also helps in ensuring 
regular investment, averaging their 
investments during market corrections and 
instilling financial discipline among the 
investors. 
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Source: www.financialexpress.com
AVOID COMPROMISING YOUR EMERGENCY FUND
• While you continue investing for the long 
term, ensure you build an emergency fund big 
enough to meet your mandatory monthly 
expenses of at least 6 months. 
• These mandatory expenses should include 
your daily living expenses, utility bills, 
insurance premiums, tuition fees of your 
children, EMIs, rent, contribution to your 
crucial financial goals, etc.
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Source: www.financialexpress.com
REVIEW YOUR INVESTMENTS AT PERIODICAL 
INTERVALS
• Regular review of your funds’ performances is 
as crucial as regular investing in equity mutual 
funds. After all, even star funds with excellent 
returns in the past can remain laggards for a 
long time in the future. 
• Thus, ensure to compare the returns 
generated by your existing funds over the 
past 1-year period with their benchmark 
indices and peer fund schemes at least once 
in a year. 
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FOCUS ON THE FUTURE AND KEEP A LONG-TERM 
PERSPECTIVE
• Investing requires making informed decisions 
based on things that have yet to happen. Past 
data can indicate things to come, but it’s 
never guaranteed.
• While large short-term profits can often entice 
market neophytes, long-term investing is 
essential to greater success. 
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BE CONCERNED ABOUT TAXES BUT DON'T 
WORRY
• Putting taxes above all else can cause 
investors to make misguided decisions. While 
tax implications are important, they are 
secondary to investing and securely growing 
your money.
• While you should strive to minimize tax 
liability, achieving high returns is the primary 
goal.
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DON'T OVEREMPHASIZE THE P/E RATIO
• Investors often place great importance on 
price-earnings ratios, but placing too much 
emphasis on a single metric is ill-advised. P/E 
ratios are best used in conjunction with other 
analytical processes.
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