YOUR MONEY IS LOCKED UP

Investing is suitable for the long term is a phrase you’d often have heard. But that doesn’t mean the money you invest is locked in for 20 years or more. Structurally, stocks and MFs are liquid, which means you can exit as and when you need to.

The longer you stay invested, the greater are the chances of smoothing out the bumps in market performance and making positive returns. Though you can take out your money at any time, do so only when it is necessary or when you are approaching the financial goal towards which you have invested. The pitfall of withdrawing your investments early could impact the potential returns you are likely to make. Remember, buy low and sell high is the mantra for making money in equities. ■