Short term / Long Term Investment
- In delivery-based investing, you buy and hold stocks for more than one day with a short term / long-term perspective.
- Unlike intraday trading, where stocks are bought and sold on the same day, delivery trading allows investors to take ownership of shares.
- The main goal is capital appreciation over time rather than short-term gains.
- Suitable for investors who want to build wealth steadily by holding quality stocks.
- Stocks purchased under delivery trading are stored in the investor's Demat account until they decide to sell.
Benefits of Short-Term Investments
- Low Risk –Short-term investments are usually less volatile and come with lower risk compared to long-term investments.
- Liquidity – You can access your money quickly without significant penalties or loss of principal.
- Stability –Many short-term investments are backed by government entities or reputable financial institutions, ensuring a higher level of safety.
Benefits of Long-Term Investments
- Higher Potential Returns –Over time, long-term investments can benefit from the power of compounding, market growth, and reinvested dividends.
- Tax Advantages– Certain long-term investments, like retirement accounts, may offer tax benefits such as tax-deferred growth.
- Risk Mitigation – Although long-term investments can be volatile in the short run, they tend to smooth out market fluctuations over time.
- Wealth Accumulation –By staying invested over a long period, your money has more time to grow and compound, helping to build wealth.
