An important decision we made along the way was to focus on long-term, low-cost and diversified investing.
New tools have made investing and trading stocks incredibly easy. Investing products that offer commission-free trading have increased access to financial markets.
At the same time, these products have encouraged people to take on risks similar to gambling.
One study found that over twelve years, only 5 percent of active retail traders made any profit at all. Outsmarting the market is usually a bad long-term strategy.
We are consciously encouraging people to hold onto their investments over a long period. The longer timeframe helps the dynamics of financial markets deliver performance to achieve set targets.
How do we deal with changes in the market?
Investing is all about focusing on your financial goals and ignoring the noisy nature of the markets and the media that covers them.
🌱 Once you have established your portfolio, we recommend buying and holding the investment for the long haul.
🌱 Also, it’s best to keep on investing according to planned investment contributions.
🌱 Do not let yourself be influenced by short-term market movements and stay focused on the long-term portfolio saving goals.
Usually, when there is a sudden market downturn, there’s a lot of fear and anxiety. You might see your investment portfolio value go down. But selling at that time and locking in losses is the worst thing you can do. Often it’s actually a good time for portfolio managers to rebalance your portfolio, buy more of relatively lower-priced asset classes. This way, you’ll be taking advantage of the market turning upward again.
🌱 We commit to ensuring that our customer portfolios are rebalanced annually to keep target asset allocations and take advantage of market movements.