How many of us actually look at equities as a long-term option? Isn't it always the avenue where you make quick bucks, pack your bags and leave? We take a sneak peak at how equity is probably an avenue, where risk is inversely proportional to time and returns are directly proportional to time.

Volatility gets ironed out over a period of time. This holds good for equity investments as well. If an investor is investing with a long-term horizon, then the probability of gaining is always more than losing. For example, during the economic crisis of 2008, when the market fell from a high of 21,206.77 in January 2008 to a low of 7,697.39 in October 2008, the investment world was panic-stricken, and there were pundits who were predicting doomsday, and some even foresaw the failure of capital markets. However, the market recovered thereon and reached a high of 18,047.86 in April 2010, all this amidst a still turbulent phase.

Table 1 shows how one's investment would have performed over the long run. We can easily see that over the longer-term, the probability of loss gets reduced and also the returns are decent on a y-o-y basis, which means that one who has invested for a longer span of time is bound to get good returns, which not only help him beat the inflation but also generate surplus over and above the inflation rate. Benefits of long-term investment

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