How long term investment helps an investor can be understood in this perspective that over a period of time the real value of stock is recognised by market and fluctuations in stock prices are ironed out. One has to identify the long term investment time frame to know the time one has to wait to make money from equity market.

2. Earlier as per the policies of govt and income tax related laws long term investment period was considered to be 3 years but with changing dynamism of stock market and prevalent uncertainity in global mkt, this time has been reduced to a period of 1 year.

3. Real stk mkt gurus like Warren Buffet have made money from long term investment by holding the stocks for a period ranging between 10 -12 years and in some cases stock has been held for atleast 25 years also.

4. Thus as a thumb rule one can say that one should be able to hold a stock for minimum 5 years to fall in the bracket of long term investor.

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