Video Webcast

EU Referendum: Time not timing is key to successful long-term investing


If you want your money to grow, the stock market could be a good place to invest. But forecasting what will happen tomorrow isn't easy, and unpredictable factors can lead to swings in share prices. That's why you should only invest if you can take a long term view and to prepare for a sometimes bumpy ride. During tough times, it's only natural to consider changing strategy. Why not sell and reinvest when things are calmer? This is called market timing. When you aim to sell when prices are high, and buy when they are low. This may sound appealing but it can reduce the chances of achieving your long term investment goals. If you've been invested in global stock market index MSCI World from 2005 to 2015, you would have achieved a return of over 60%. However, if you'd missed the 10 best days over those 10 years, you would have lost around 5% of the value of your initial investment. So while investing has its risks, time not timing is key to successful long term investing.

Important Information

Any security(s) mentioned above is for illustrative purpose only, not a recommendation to invest or divest.

This document is intended to be for information purposes only and it is not intended as promotional material in any respect. The views and opinions contained herein are those of the author(s), and do not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds. The material is not intended to provide, and should not be relied on for investment advice or recommendation. Opinions stated are matters of judgment, which may change. Information herein is believed to be reliable, but Schroder Investment Management (Hong Kong) Limited does not warrant its completeness or accuracy.

Investment involves risks. Past performance and any forecasts are not necessarily a guide to future or likely performance. You should remember that the value of investments can go down as well as up and is not guaranteed. Exchange rate changes may cause the value of the overseas investments to rise or fall. For risks associated with investment in securities in emerging and less developed markets, please refer to the relevant offering document.

The information contained in this document is provided for information purpose only and does not constitute any solicitation and offering of investment products. Potential investors should be aware that such investments involve market risk and should be regarded as long-term investments.

Derivatives carry a high degree of risk and should only be considered by sophisticated investors.

This material, including the website, has not been reviewed by the SFC. Issued by Schroder Investment Management (Hong Kong) Limited.