Question

Some investors believe that once you have selected a long-term investment, you should check on it only periodically and resist making changes. Others believe that it is important to check your account balances almost daily. These investors frequently move their balances from one fund to another as they constantly look for choices that pay higher returns. With which view do you agree? Why?

Answer 1

I am agree with the first statement that once you have selected the long term investment,you should check on it periodically and resist making changes.

The long term investment aims for a longer peiod and not for shorter period.Share markets are volatile in nature and market movements are unpredictable and checking daily,weekly or monthly when stocks are down is going to make you anxious.When we make long term investment decision we should forget that money for certain period we can't change our decision just because of market volatility and the return over the long term period will be more than the short term period because of less volatility.

So I will recommend untill you are in urgent need of fund or in some sort of emergency, you should change your long term investment decison and check your Investment balance on daily basis.