Short & Long term investments

When we do our financial planning and investments, we always classify them in 2 categories, which is Long term and Short-term investment planning and based on that we make our choices of investments. Mutual funds are a good option when it comes to making long-term investments. Over a period of time the market grows and so does the returns on investments. This type of investments are very good to start early in life and build up. The growth of compound interest can give amazing benefits.

For Cryptos, I have a mixed opinion. If it is not BTC, then it's very difficult to predict. In the past I have bought some altcoins with the thought that I will keep them for some years and with the appreciation get better returns, but most of the altcoins have lost their values and now not even giving me the returns of equal to my investments. So, if it's not for the main coins like BTC, ETH, SOL then it's not advisable to look at other altcoins from long term perspective. I believe that most of these altcoins are just a gamble.

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Then there are other forms of investments which are very low returns but they are the safest and steady. As I age, I believe more and more in these types of investments. Like Fixed Deposits, PPF, Post office deposits. They are the safest. But yes their major drawback is that they will not even cover the cost of inflation and over a period of time one finds their value of money going down rather then growing.

Investments are always made keeping our life goals in mind. Some expenses are on short term basis where one cannot afford to gamble whereas some are long term basis where one can take some risk as the benefit of having more time at hand plays along.

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