Long term investments earn you profit only in Strong and Efficient Markets. Because only in Efficient Markets, the current stock price completely reflects the future estimates about the stock.
I believe, in India the markets are still not as efficient as the rest of the developed world and this poses a big risk to an individual investor to choose and invest in individual stocks.
The options available for individaul investors is to either invest in Mutual Funds or the more new products like ETF's. They provide individuals with greater diversification at one go. I personally prefer mutual funds because these people are more efficient and effective in making decisions and sentiments do not come into play. Also they have more information than a common individual.
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