INVESTMENT GUIDE
Investment principles
Key investment principles
We have identified 6 key principles that should support strong long term investing.
Volatility is part of investing
A Volatilidade faz parte do Investimento
Volatility is part of investing
Invest for the future
Plan to invest. Invest to grow your money.
Regular saving increases the diversification of the types of assets a client holds and helps grow the client’s wealth. Because contributions happen at different points in time, you also enter at different market prices. That helps diversify and reduce risk.
A solid foundation is the best start.
The long term feels far away, but it starts now.
Diversifying investments means more security.
Your life is the best time horizon for your money.
Value the power of compound interest
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Start earlyand invest regularly.
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The benefits of regular investingbecome clear over time.
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Reinvesting incomeor dividends increases total return.
Cash is rarely king
The cash and liquidity asset class tends to deliver weaker long term returns.
The current environment of historically low interest rates means the return generated in money markets is close to zero and is extremely vulnerable to the erosion caused by inflation. History shows, without doubt, that investors who parked their money in bank deposits did not benefit from the performance achieved by those who stayed invested in higher risk assets with a long term perspective.
Avoid market timing
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It is essential to stay invested.
Market drops are hard to predict and strong rises sometimes happen in the days immediately after. So not being invested can have a significant impact on total investment returns.
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Volatility is part of investing.
It is essential to keep a diversified portfolio with a long term investment perspective. If an investor cannot tolerate losses for a period of time, that usually indicates an investment risk level that does not match the investor profile.
There are no perfect days to invest.
The importance of diversification
Diversification helps reduce investment risks.
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It does not eliminate risk, but it is essential
When building an investment portfolio, because you are not dependent on the price movement of a single asset.
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Extreme investments
Typically do not deliver the best results over the medium term.
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A higher number of different products
In a portfolio, and investing across multiple asset types, can reduce the portfolio’s overall risk.
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