Take a long term view

Stockmarkets can be unpredictable. They move frequently - and sometimes sharply - in both directions.

It is important to take a long term view (typically ten years or more) and remember your reasons for investing in the first place. Be prepared to view the occasional downturns simply as part of a long term investment strategy, and stay focused on your goal. 

Our research shows that, historically the longer you stay invested, the smaller the likelihood you will lose money and the greater the chance you will make money. Of course, its worth remembering that past performance is not a guide to what might happen in the future and the value of your investments can go down as well as up.

Secrets to successful investing

  • Time to grow - give your money as much time as possible to grow - at least 10 years is best. You'll also benefit from 'compounding', which is when the interest or income on your original capital begins to earn and grow too.

  • Staying invested - there will be times of market volatility. Market falls are a natural feature of stockmarket investing. During these times it is possible that emotions overcome sound investment decisions - it is best to stay focused on your long-term goals.

  • Don't try to time the market - resist the temptation to change your portfolio in response to short term market movement. "Timing" the markets seldom works in practice - and can make it too easy to miss out on any gains.

The golden rule to investing is allowing your investments sufficient time to achieve their potential.

Investing early pays off

Long term saving




Figures assume investments are made each year as a lump sum, a hypothetical 6% gross annual return, which includes any reinvestment of income and dividends. Figures assume no initial charges on the investment, management charge is 1.5% for the first ten years and 1% thereafter. The final values do not take account of taxes or inflation. This hypothetical example is for illustrative purposes only and does not represent the performance of any security in an untaxed account. Investing in this manner does not ensure a profit or guarantee against loss.