Archive · 23 Jul 2025
Study Shows Trading Risks, Long-Term Investing Recommended
Imagine trying to make money by buying and selling things in the stock market really fast.
A study showed that this can be very hard and risky for most people.
Many lose money, especially when they try to trade stocks daily.
On the other hand, if you put money into a plan where you regularly invest in a group of stocks (mutual fund), you have a higher chance of making money over a long time.
This type of investing is like planting seeds and letting them grow, rather than trying to win a race every day.
More and more people are choosing the slower, steadier way to invest.
Study shows finance students struggle with trading, with many losing money.
Sebi reports 90% of individual traders in derivatives lost money in 2024-25.
Mutual fund SIPs have delivered over 20% annual returns in the past five years.
A Sebi study shows a large percentage of retail investors sell IPO shares quickly.
Number of SIPs and assets have significantly increased, alongside longer holding periods.
- Who
- Individual investors and finance students.
- What
- Analysis of trading vs. investing strategies.
- When
- Data presented is from 2019 to 2025 and studies from July and September 2024.
- Where
- India
- Why
- To highlight the challenges of short-term trading and the benefits of long-term investing.
Short-Term Trading
Long-Term Investing
Investment Performance
Short-Term Trading
High risk and generally poor returns.
Long-Term Investing
Long-term investing in mutual funds with SIP is better
- Finance Student Study Return
- 3.2% average return
- Experienced Traders Return
- 130% average return
- Derivatives Traders Losing Money
- 90% of individual traders
- Losses in Derivatives
- ₹1.05 trillion in 2024-25
- SIP Growth
- 92 million operational SIPs in June 2025
- Mutual Fund Return
- Over 20% annual return (past 5 years)