You are here: Home - Investing - Experienced Investor - News -

Staying invested over the long-term: the proof it pays off

Written by: Paloma Kubiak
The shaky start to the year for global markets has unnerved investors but the overarching message from the experts is: don't panic and stay invested.

This goes back to the old adage of time in the market being more important than timing the market.

The experts at AXA Self Investor have crunched the numbers and revealed that staying invested over the long-term does in fact pay-off.

They assessed the 10 year performance of the FTSE 100, on a rolling monthly basis since February 1996, and found that over the 10 year period there were just six out of 120 occasions where investors would have lost money.

This means that investing long term – in this case 10 years – generated a positive return 95% of the time.

Over the same rolling decade period, the average return for the FTSE 100 was 69.57%. The largest 10 year return was 154%, while the biggest loss was 14.5%.

The research found the only losers were those investors who bought during the dotcom boom (31 January to 30 June 1999) and subsequently sold at the lowest point in the financial crisis (31 January to 30 June 2009).

Three tips for successful long-term investing

Adrian Lowcock, head of investing at AXA Self Investor, offers three top tips for successful long-term investing:

Stay calm – Only make investment decisions when you are calm and rationale. Mistakes are often made in the heat of the moment and when our attitude and tolerance for risk is low.

Remember your goals – Remind yourself what you are investing for, whether it is retirement or a dream holiday. When will you need the money, is it in the next couple of years or not for the next few decades.

Become a contrarian – Be greedy when others are fearful. When everyone is selling think about doing your annual ISA or SIPP allowance, buying funds that you want to hold for the long term.


Related Posts

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Inheritance tax: five ways to minimise a bill upon death

No-one wants to think about dying but it’s important to organise your estate to plan for inheritance tax purposes and...