fbpx
Réserver Consultation

Why Are Long-Term Investments Important?

The advantage of long-term investing is found in the relationship between volatility and time. Investments held for longer periods tend to exhibit lower volatility than those held for shorter periods.

One of the main concerns for any type of investing is market volatility. Volatility measures the degree to which prices change over time. Another way to think of volatility is in terms of price swings. The greater and more frequently an investment’s price swings, the higher its volatility. Investments with high volatility have a high degree of risk because their prices are unstable.

Let Your Money Make Money

The advantage of long-term investing is found in the relationship between volatility and time. Investments held for longer periods tend to exhibit lower volatility than those held for shorter periods.

Tax Advantages on Capital Gains

The tax on a long-term capital gain is almost always lower than if the same asset is sold and you realize the gain in less than a year. Because long-term capital gains are generally taxed at a more favorable rate than short-term capital gains, you can minimize your capital gains tax by holding assets for a year or more.

It’s Easy to Succeed with the Right Steps

You don’t need extraordinary trading skills or savvy financial know-how to remain invested over the long-term – all you need is a great dose of patience and a strategy to make the most of your returns.

Partager:

Plus d'Articles

Data-Driven Decision Making for Business Growth

In the fast-paced and technologically-driven landscape of today’s business world, the ability to leverage data effectively has become a cornerstone for sustainable growth. Data-driven decision-making

Join Our Newsletter

Subscribe and always stay up to date with the latest news about IV Capital.