Investments in Mutual Funds require the appropriate time horizon. Having the right time horizon not only provides a better chance of getting expected investment returns but also lowers the risk in the investment.

By staying invested over the long term, some years of low/negative returns and some years of impressive returns will make the average returns quite reasonable. Therefore, the investor can ‘average out every year’s widely fluctuating returns’ to get a more stable long term return.

Anonymous Changed status to publish November 22, 2018