Investing for the long term typically means 5+ years but can be stretched over 30+ years. Over a longer investment lifespan, investors can afford to take greater risk as they have the benefit of being able to ride out any short-term volatility that may negatively impact the portfolio. Planning your time in the market, be that a long or a short time, is important as it can help to determine what level of risk would be acceptable for you. No matter how long you plan on investing for, using a discretionary management service can help you to find the perfect balance of investment risk vs. investment return.
Working with an investment manager can help you to invest in a diversified portfolio that invests across multiple asset classes and geographies. By investing in this way, you spread your exposure away from a single market or sector.
Long-term investors focus on buying and holding the investment for a longer period of time. Short-term investing can have strong fluctuations as the stock market goes up and down. Buying and selling assets on a reactive, short-term basis can therefore present greater risk. By playing the long game, your portfolio is more likely to recover and grow throughout market fluctuations, helping you to meet your long-term investment goals.