The Department of the Navy has issued a memorandum to provide information on the importance of having a long-term investment horizon for financial success. In today's fast-paced and ever-changing market environment, it is crucial for investors to have a clear understanding of their investment goals and time horizon.
Investing is a bit like predicting the weather. With so much information and technology these days, there's a high likelihood that consensus on the short-term direction of markets may be accurate. However, predicting the long-term performance of individual stocks or asset classes is much more challenging.
The idea that investors should hold relatively safe assets for near-term goals while funding their long-term goals with riskier assets is false. Allocating investments across the primary asset classes (stocks, bonds, and cash) provides an appropriate balance between short-term stability and long-term growth potential.
We explore how institutional family offices are allocating capital, leveraging the viewpoints of 165+ distinct family office decision makers globally. These family offices are increasingly recognizing the importance of having a long-term investment horizon to achieve their financial goals.
Flexi-cap funds are a type of mutual fund that falls under the category of equity funds, designed to provide investors with flexibility in their investment choices. These funds allow investors to capitalize on opportunities across different market caps, sectors, and regions while maintaining a long-term perspective.
9Basil, which currently has staff based in Singapore and Thailand, plans to build local teams across its new markets if each provides enough potential for long-term growth. This approach aligns with the concept of having a long-term investment horizon to maximize returns.
FRR said it estimates the extension of the investment horizon will increase the fund's value creation by on average more than €1.8bn by 2033. This highlights the significant impact that a long-term investment approach can have on the growth and success of a fund or portfolio.
Investing is a long game. Whether you want to invest for retirement or grow your savings, when you put money to work in markets, it's best to have a long-term perspective. By focusing on long-term goals and staying disciplined in your investment approach, you can increase the likelihood of achieving financial success.
