Some investors may panic and choose to pull out at the slightest sign of volatility. How the nature of markets work is that in the short-term they fluctuate, but over a long-term there’s potential for gains.

Carin Meyer, head of Share Investing at FNB, says, “There’s an element of risk to investing just like there’s potential for capital growth, hence it’s important for one to be aware of their risk appetite to avoid hasty decision making during market volatility.” Give yourself the best chance of success during unpredictable times and remember these top three long-term investment tips:


Don’t put your eggs in the same basket! Owning shares from different sectors and owning companies that do different things means that when one industry is down, another industry may be up. This ensures your portfolio has the best chance of success. A very easy and affordable way to ensure diversification is through Exchange Traded Funds (ETFs).

2. Be realistic in your expectations

Your portfolio can take large positive or negative swings when the markets are volatile. Make sure that you understand this and don’t take any knee-jerk reactions, especially when it comes to selling, if it doesn’t match your long-term investment goal. If you have diversified well, you should still able to make returns, even during volatile times.

3. Stay invested

You must always remember that you are in this for the long term so don’t panic and pull out when the market goes through short-term dips. Stay invested and even be on the lookout for bargains when prices drop.

Source: FNB

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