With these ten principles, it will be easier to achieve your long-term investment goals.
1. Learn your investor profile: "What, when?"
Before you start investing, think about your goals. To help, you can ask yourself when you will need your money, what income you want, or what loss or variation in your investments you are willing to incur (without losing sleep).
2. Diversify: "Don't put all your eggs in one basket"
Diversification makes it possible to reduce risk and access more investment opportunities. At any given time, some assets perform better than others. For this reason, a balanced investment must include different classes of financial assets (stocks, bonds, currencies, alternative investments, etc.).
3. Invest in the long term: "don't get carried away by the short-term distractions"
In the short term, the markets rise and fall and are guided by the news, which can lead us to make hasty and, therefore, wrong decisions. In the long run, however, markets get back on the right track. That is why it is important not to get carried away by the short-term distractions and remember that the investment must be allowed to mature.
4. Flexibility: "Keep an open mind"
In all market scenarios, both rising and falling, there are opportunities. The best long-term results are achieved by taking advantage of the opportunities at any given time.
5. Discipline: "when it comes to investments, use your reason, not your heart"
Avoid trends and "herd behavior"; buying what everyone buys, or selling what everyone sells, can lead to buying an asset when it is more expensive and selling when it is cheaper. This is exactly the opposite of what should be done. It is essential to keep calm, so as not to get carried away by emotions.
6. Invest, don't speculate: "leave the gambling to the casino"
When you enter and exit an asset or market constantly, sometimes you will get it right, but other times you will incur considerable losses, and the end result, like that of most casino players, may not be what you expected.
7. Learn from your mistakes.
“This time is different”, is the phrase that leads to the biggest losses in the history of investments.
8. Manage your risks: "it's not just about winning, but also about not losing"
Warren Buffett said that "Predicting the rain doesn't count; building arks does". Proper risk management is essential. To do this, don't take unnecessary risks in your portfolio, keep an eye on investments that are too illiquid, and always try to have balanced portfolios, where part of your portfolio (depending on your investor profile) acts as a refuge in times of hardship.
9. Don't invest in what you don't understand
If you want to sleep peacefully at night, make sure you understand where your savings are invested and the opportunities and risks they offer and that you trust who is managing them. Investing only on the basis of past returns is a mistake; be wary of high returns, especially if you don't understand how they were obtained.
10. Invest little by little - "little and often fills the purse"
Determining the best time to make an investment is not an easy task. If you invest little by little, the task is much less daunting, and you can reduce the anguish of not knowing if you entered at the best time, since you will be investing at an average price.
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Investment Funds do not guarantee returns, and past results are no guarantee of future results.
This information does not exclude or exempt you from consulting the legal documentation to be provided before subscribing an Investment Fund, namely, the KIID, the Prospectus, the Specific Marketing Conditions and the Supplementary information document. Offering this information does not imply the provision of a tax advisory service or personalized investment advice, since no recommendation is made and your personal circumstances are not taken into account.