The 5 Principles of Long-Term Investing

1. Think long term, stay the course

Markets fluctuate constantly. Prices rise, fall and recover. But history has shown that, over time, markets tend to grow.

Panic-buying or panic-selling, which are often based on emotions, can hurt your returns. By staying focused on your long-term goals and not reacting to short-term market fluctuations, you increase your chances of long-term success.

📌 Did you know that investors who stay in a market during crises on average perform better than those who exit a market when it loses value?

2. 2. Diversification is not a luxury, it’s essential
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One stock or sector might perform well—but it also carries more risk. By diversifying across different asset classes (like stocks and bonds), regions and sectors, you reduce the impact of any setback within one specific market.

Mutual funds provide this diversification automatically. With just one fund, you gain access to dozens or even hundreds of companies around the world. That helps to limit the impact of a poorly performing region or sector.

3. 3. Investing takes patience and discipline
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It sounds simple, but isn’t always easy: continue investing regularly, even during difficult market periods. By investing systematically (e.g. monthly), you build a portfolio that is more resilient to market ups and downs.

This approach is known as “cost averaging”: you automatically buy more units when prices are low and fewer when prices are high, helping smooth out volatility over time.

4. 4. Don’t let emotions drive your decisions
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Emotions are often an investor’s biggest enemy. Fear, greed or doubt can pull you away from your original strategy. That’s why it’s important to define your goals, risk profile and investment horizon in advance.

Investing isn’t gambling—it’s a structured process. By sidelining your emotions as much as possible, and focusing on the facts and your long-term goals, you stay on course, even when the market is performing badly.

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6. 5. Knowledge is power
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The financial world changes all the time. New trends, geopolitical events and economic data all influence markets. Staying informed helps you make better choices.

Our website provides articles, market insights and educational content to help you get better insight into the workings of funds and markets. You decide what you invest in, but you’re not alone: we ensure transparency, ease-of-use and information.