The link to the YouTube video is at the bottom of this page. Here are some key points I have picked up from this discussion.
- Investing does not really entail a certain <or specific> time frame. Long term <Time frame> is quite relative.
- Financial markets usually would have a 10-year cycle.
- Diversification - A lot of investors in the Philippines look at investing as bank deposit and time deposit, then they jump immediately to equity. There's nothing in between <to balance their portfolio>. The ones in between would be your balance funds, your multi-asset funds, your bond funds, which can provide a decent amount of return but volatility definitely is a loy lower than equities.
- Before you go into investing, you need to personally identify the following.
- Goals
- Time horizon
- Risk appetite
- Relevant questions once you are already invested.
- How long is long term? - Equity investing, like any other investments, needs some time for it to grow.
- Strategic or Tactical? - That's the role of a fund manager, to be able to navigate between strategic or tactical and make <sound> decisions <on behalf of the investors>. Do not fund manage a fund manager.
- Do you need to diversify? - Yes!
- Goal of the fund manager - An actively managed fund will outperform an index when the recovery happens.
- Cycle of Market Emotions - At the end of the day, the greatest emotion to have is patience.
- Stay the course - Investing is not about quick win. It's about long-term potential gain.
- Diversify - Asset diversification is a good practice of risk management.
- Keep learning - Despite the volatilities in the market, returns from variable investments still outperform returns from fixed income investments over the long term.
- Before you make any rash decisions about your policies or mutual fund, it is good to talk about it with <a professional> financial advisor who can help and guide you.
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