Tips for Successful Long Term Investing

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As Warren Buffet rightly said, “If you aren’t thinking about owning a stock for 10 years, don’t even think about owning it for 10 minutes”. Investing should always be approached with a long-term vision and investments should be kept for a number of years. Long-term investments not only give your money more time to flourish, it also helps you smooth out frictions and bumps in the market. If you’re ready to be in for the long haul, these tips given below are sure to be of help

1. Invest Regularly

A long-term investment isn’t only about putting money in once and leaving it as it is. If you want to maximize your returns, it is advisable to invest in small amounts regularly. This will reflect in your plan as it keeps on getting fed, making your potential returns compound faster.

2. Keep your Emotions in check

Whenever markets go down, it’s very common to see investors rush to sell off their investments to minimize losses. By doing so, they’re only making their losses real and they could be missing out on some of the best days once markets rebound. If you remain invested and hold your ground, there are high chances that your loss is just a number on your dashboard, and this number would go in the other positive direction once the market recovers. Keeping calm and not being swayed by emotions is very important for successful long term investing.

3. Diversify your Portfolio

By investing in various asset classes like Bonds, Fixed Deposits, Shares, Gold etc, you can mitigate the unsystematic risk and volatility in your portfolio. In simpler terms, you’re less likely to lose money. Diversifying your portfolio is important; so that poorly performing investments are balanced out by others doing well.

4. Trade Judiciously

Avoid trading too often. Each time you buy or sell investments, you will have to pay trading costs, and the more you trade, the higher these costs will turn out to be, and vice versa.

5. Consider Taxes

It’s always a good thing to consider tax as it will likely shrink your returns. So, if you want to make the most of your investment journey, consider investing tax-efficiently.

6. Take Expert Advice 

With our busy schedules, it can be hard to find enough time to take care of our investment plan. When it comes to investing, a brilliant way to boost your investment journey is to get help. There are many online services and platforms, that’ll help you throughout your long-term investment journey.

 7. Avoid settling for extremely high trading charges

It’s important to keep fees and charges as minimum as possible. An efficient way to keep expenses low is to shop around and evaluate the different options offered by similar investment services. Going for the cheapest fees might make sense, but it’s also equally important not to compromise on the quality of the service. It’s better to pool in a little bit more money and benefit from a high-quality service.