Key to long-term investing: ‘Time in the market’ more important than ‘timing the market’

financialexpress.com:

Through smart investing, one can outpace inflation and increase the value of money. Long-term investment allows investors to take advantage of compounding, which involves reinvesting profits again and again. Over time, this compounding benefit helps generate even higher profits. With long-term investment, investors have the opportunity to roll over the profits earned from one asset into other promising investment instruments.

Experts suggest that one should focus more on ‘time in the market’ rather than ‘timing the market.’ One should never try to predict market fluctuations; instead, an investor must look at long-term investment strategies. This involves building a good portfolio of different assets and holding onto them for the long haul, without getting worried about short-term market movements.

Shaily Gang, Head of Products at Tata Asset Management, explains how specific objectives provide a roadmap for investment decisions and ensures alignment with long-term financial aspirations.

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People understand that certainties are rare but they do not understand probabilities, she said, adding that the world is governed by chances and not certainties, but in the real world, people pay attention to black and white.

“One cannot make an exhaustive list of all the possible risks, let alone provide for the same. This is where having a good amount of threshold wealth helps. Money helps one to manage other things well. The indiscriminate manner in which COVID-19 hit the world was unthinkable. Risks like those cannot be provided for. This is one big reason why one should invest regularly,” Gang emphasized.

Stating that true wealth isn’t solely