We are launching Amos Value.
We are launching Amos Value. A Swedish equity fund that seeks out quality companies hidden from the front pages of business newspapers, acquired only when the…
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Saving goal
Long-term investing
Long-term investing is about allowing capital to work over time. By accepting short-term volatility, you can participate in the value creation of companies that grow and develop. Historically, equity funds with a long time horizon have beaten inflation. But it requires the patience to stay the course.
Why time in the market matters
Time in the market, not timing
Long-term investing means staying invested through multiple market cycles. Rather than trying to predict short-term moves, the focus is on company earnings, cash flows and long-term prospects. With a plan you can stick to and regular contributions, the rest tends to take care of itself.
- Capture corporate value creation
- A long-term approach allows you to benefit from the value created as profitable companies grow, invest and strengthen their competitive position.
- Manage market volatility
- In the short term, markets can be volatile. With a longer time horizon, individual periods matter less and the focus can stay on fundamentals.
- Discipline and structure
- A simple plan and automated contributions remove the need to make a decision every time the market moves.
Guide
How to build a long-term savings plan
Long-term investing is not about finding the right fund at the right time. It is about creating a plan you can stick with regardless of what the market does in the short term.
- Time is the most important factor
- The Stockholm Stock Exchange has historically delivered an average real return of around 6 to 8 percent per year. But that return has not been evenly distributed. Individual years can vary widely. With a time horizon of 10 years or more, however, the range of returns narrows significantly, and equity funds have historically rarely delivered negative real returns over such long periods.
- Compounding in practice
- Compounding means you earn returns not only on your invested capital but also on the returns you have already received. The effect accelerates over time. During the first years it is barely noticeable, but after 15 to 20 years it can account for more than half of the total capital. That is why time in the market matters so much.
- Handle downturns without changing your plan
- Market downturns are a natural part of equity investing. Markets have historically always recovered, but it can take time. The most important thing is not to make decisions driven by emotion. Selling after a downturn often means realising a loss and missing the subsequent recovery. A well-thought-out strategy, a sensible risk level and regular contributions help you stay the course.
- Real returns and inflation
- Inflation erodes the purchasing power of money sitting in a regular savings account. Equity funds have historically delivered returns that exceed inflation, meaning your capital can grow in real terms. The longer the time horizon, the more important it becomes to protect against the effects of inflation. Long-term investing in equity funds is one way to do that.
Principles
Three principles for long-term investing
It does not need to be complicated. Follow these core principles and you have a solid foundation for reaching your goals.
01
Save regularly
Regular contributions smooth out the purchase price and remove the need to time the market. Automate your saving if possible.
02
Stick with your plan
Short-term fluctuations are normal. Those who stick with their strategy through both ups and downs have historically been rewarded.
03
Adjust risk over time
The closer you get to your goal, the more it may be worth gradually reducing risk to protect the capital you have built.
Common questions about long-term investing
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