Why you should stick to your investment strategy

PATIENCE is an important quality when you are trying to succeed at something, and investing is no different.

It is all about being able to play the waiting game by staying calm and invested.

Although investing has become more accessible over the years, thanks to the rise in new digital platforms, sticking to your investments takes a lot of courage whether you are a new or seasoned investor, according to Momentum.

The Momentum Investments 2021 Sci-Fi report showed that 50% of investors who switched investments in 2021, did it due to market volatility.

Further research has proven that it is best to stay put once you have invested.

To keep jumping ship in chasing better returns elsewhere will most likely lead to losing money, the company stated.

You have to change your mindset and stay in the driver’s seat when it comes to your money.

According to Stanley Gabriel, CEO of Momentum Investo, “The start of your investment journey is relatively easy. Being consistent and patient with your investments is more difficult.”

Gabriel cites the words of arguably the most successful investor this side of the 20th century, Warren Buffett: “It is time in the market that counts, not timing the market.”

To this Gabriel adds, “Markets will probably fluctuate, and your returns will probably take a hit, especially in these uncertain times.

“However, it is at this time that you have to be resilient. The longer you are invested, the higher your returns are likely to be.”

He compares investing in exchange-traded funds (ETFs) or unit trusts to buying a house.

“When you buy a home, you look forward to seeing the value of the house increase. Although you are confident the value will increase, it won’t do so overnight. You know and expect the value to increase with time. You should have the same understanding when it comes to investing,” said Gabriel.