What do you have to consider for a medium-/long-term investment?

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What do you have to consider for a medium-/long-term investment?

In the case of medium-/long-term investments, which by definition require a more “strategic” approach rather than a “tactical” one, you should have very precise ideas about your intended goals:

  • To maintain purchasing power in the long-term in order to protect it from actual inflation,
  • To increase capital
  • To secure a return on a supplementary pension.

When considering a medium-/long-term investment, it’s necessary to understand what phase of the economic cycle you’re in, to not need to divest your capital and to diversify your portfolio well between financial instruments, markets and currencies.

Finally, it must be noted that an investment that was originally carried out with a short-term objective shouldn’t be made with financial instruments suitable for medium-/long-term investments, as this could be risky. On the other hand, investing with short-term financial instruments for medium-/long-term investment goals may be inefficient.

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In this article, we mentioned other topics that you may find useful to explore:

What does Financial Investment Return mean?

How are investments divided according to the time horizon?

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