Why you should invest for the long term

1. Why you should invest for the long term Investing isn’t just about how much money you have to invest. It’s also about how much time you have to invest it for. Start as early as possible and watch your dollar work for you. Long term investments plans are one of the best ways to create wealth and secure your future. You could choose from numerous investment products and opportunities, you could either invest on your own or use the help of a financial expert. There is no set formula or method that investors can take to reach their financial goals, just a general guideline that staying invested for the long run is always better. Here are some reasons for this: 

2. Protects from rapid market changes: One of the best parts of making a long term investmentis that it can save you from any changes in the market. One of the main concerns for any type of investing is market volatility. Investments held for longer periods tend to exhibit lower volatility than those held for shorter periods. The longer you invest, the more likely you will be able to weather low market periods. 

3. More chance to be right: When we invest a fixed sum of money each month, we buy up more of an asset when prices go down and less when prices go up. This way, we will invest at close to the average price of the asset. Staying invested in the long term has paid off historically. There are many reasons for you to invest for the long term. Saving for retirement or a college education, for a future house, or to provide funds for the long-term care of your parents are all common goals of long-term investing  Benefits of Compounding: Making a long term investment allows you to benefit from compounding. Compounding is essentially reinvesting profits made over time to generate even greater returns. 

4. This just proves that, as an investor, time is your greatest friend. Being able to reinvest your profits at even a small margin can make a major difference in your total wealth at the time of retirement.Dollar cost averaging: Dollar-cost averaging is a time-honoured investment strategy where youspread the total amount to be invested across periodic (long-term) purchases ofyour targeted assets. The main aim of doing this is to reduce the impact of volatility on your investment purchases. By using the principal of dollar cost averaging, you can skip on detailed work and planning required in timing the market in order purchase equities at the best prices. Investment Products that build your wealth while providing cover to you and your family

5. There are insurance products, both endowment and unit linked, that combine investment with insurance.By investing a fixed sum each month, you are buying up high-quality investments regardless of its price at any point in time. These are also referred to as investment linked plans or ILPs, these plans allow you to top-up your investments on a regular basis, make withdrawals and switch funds. Most regular-premium investment-linked plans also use the principal of dollar cost averaging (as mentioned above) to provide more bang for your buck. When you purchase an ILP, your premiums are used to buy units in various sub-funds. These sub-funds are portfolios of assets that are managed by investment managers. Apart from generating returns for you, units in the sub-funds pay for insurance, administrative charges, and other costs.

6. Once you decide to become a long-term investor, you'll need to choose some investments plans and strategies based on your risk tolerance and desired returns.

7. You can also find more interesting details on the site below: Website: https://www.prudential.com.sg Facebook: https://www.facebook.com/PrudentialSingapore/ Instagram: https://www.instagram.com/prudentialsingapore/?hl=en LinkedIn: https://www.linkedin.com/company/prudential-assurance-company-singapore/ You Tube: https://www.youtube.com/channel/UCWs_Qg2Rahok4kORir5w4eQ