The importance of remaining invested

There’s no shortage of information and opinion provided by the media when it comes to investments and the financial markets. Sometimes the sheer weight of information can make you feel like it’s not the right time to be invested.

It can be tempting to try and time the market. The benefits of getting it right are obvious but it’s very difficult to predict with any certainty the best time to buy or sell. With the speed that markets move the risk of getting it wrong is very high and can have significantly negative consequences on your investment.

There’s a risk that by trying to time your entry, or exit, you could end up selling low and buying high. That means you risk not only suffering the losses you are trying to avoid but compound them by missing out on the highest periods of growth that often follow a fall.

To test this point we looked at our most popular diversified fund over a period of time that covers market falls and also negative media coverage. It shows the returns for investors who stayed invested throughout, compared to the returns of those investors who felt they should sell and missed out on the one best month, five best months, and ten best months.

Time in the market, not timing the market

This shows that if you try to time the market and get it wrong you would be significantly worse off than if you stayed invested for the duration. Fortunately, because we recommend investments that our clients understand suit them, the majority have remained invested and enjoyed the rewards.

The value of pensions and investments can fall as well as rise and you can get back less than you invested.

Speak to one of our highly qualified, professional financial advisers for a no-obligation financial planning review. 

You can give our team a call on 0207 868 2891, send an email to admin@halcyonwealth.co.uk or arrange for us to call you using the form below:

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We’re very proud of winning this award, for the second year running, which recognises not only the growth of our Network over the past year, but also our continued commitment to providing quality face-to-face advice.

We’ve always known that we have the very best advisers in the market – and we’re delighted that winning this award underlines that. 

If you are unhappy with our service, we have a complaints procedure, details of which are available upon request. If you are unhappy with how your complaint has been dealt with, you may be able to refer your complaint to the Financial Ombudsman Service (FOS). The FOS website is www.financial-ombudsman.org.uk

Halcyon Wealth Ltd is registered in England and Wales. Companies House No. 10311380. Halcyon Wealth Ltd registered office: 68 Lombard Street, London EC3V 9LJ Telephone 0207 868 2891. Halcyon Wealth Ltd (Financial Conduct Authority No. 758949) is an Appointed Representative of Quilter Wealth Limited and Quilter Mortgage Planning Limited, which are authorised and regulated by the Financial Conduct Authority.