Sports has been in the limelight in recent months. By taking cues from elite athletes in their training programmes, investors could consider adopting a perseverant and consistent approach when they map out their long-term investing strategy1.
A Hong Kong fencing medalist was reported2 to have said that being a champion is not just a dream, but one has to work hard and not give up. This could be likened to keeping your financial goals in-check, investing regularly and staying invested. [Read more: 5 FAQs on long-term investing: starting out and 5 FAQs on long-term investing: staying invested]
Perseverance and consistency
Investors, based on their investment objectives and risk appetite, could focus on regular monthly investing1 like athletes would for their day-to-day trainings as they prepare for their competitions. Athletes generally train regularly over the long term, and not just aggressively over a short period.
Athletes could also face ups and downs in their athletic careers. Likewise for investing, where markets can always have a bad day, week, month or even year. Market volatility is normal, and investing can involve significant drawdowns from time to time. Investors should be aware of the volatility they can handle based on their objectives and risk appetite, but troubled times aren’t a sign to sell everything.
THE ROLE OF LONG-TERM INVESTING1
Leveraging dollar-cost averaging
Investing a fixed amount of money regularly can help reduce the impact of short-term market volatility on the overall investment in the long run.
Harnessing the power of compounding
A key reason to start early and stay invested is that this can help benefit from the compounding effect over a long period of time.
Based on their investment objectives and risk appetite, investors could consider monthly fund investment plans1 as they build their capital. J.P. Morgan Asset Management’s eTrading requires a minimum investment of HK$1,000 per month3 and investors will be able to enjoy the online trading services and keep track of their investments via the eTrading website.
J.P. MORGAN MONTHLY FUND INVESTMENT
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Considering your investment risk appetite
Fencers, basketball players and rugby players have specific needs for strength and agility, and the training would vary according to their requirements, a Hong Kong fencing champion’s strength trainer was reported to have said4. Similarly, the same could be applied to investing as investors strive to achieve their long-term financial goals, based on their risk appetite.
On J.P. Morgan's eTrading platform, the Portfolio Risk Rating is shown in the 'My Portfolio'3. The rating, from lowest risk level to highest risk level, includes conservative, stable, balanced, growth and aggressive. Similarly, each fund also has its own risk rating range from 1 (being the lowest) to 5 (being the highest) which will contribute to your portfolio risk rating. You can regularly review your portfolio risk and rebalance the portfolio as needed.
Conclusion
Taking a cue from elite athletes as they train towards achieving their goals, investors could consider investing regularly as they strive to achieve their financial objectives.
This content represents our investment team’s current view and overall strategy provided for information only based on current market conditions not taking into consideration any specific investor’s investment objective and risk appetite. Not to be construed as investment recommendation or advice.
Diversification does not guarantee investment return and does not eliminate the risk of loss.
1. For illustrative purposes only based on current market conditions, subject to change from time to time. Not all investments are suitable for all investors. Exact allocation of portfolio depends on each individual’s circumstance and market conditions.
2. Source: “Tokyo Olympics: Cheung Ka-long makes history for Hong Kong with fencing gold”, South China Morning Post, 26 July 2021.
3. Source: J.P. Morgan Asset Management’s eTrading platform, as of August 2021.
4. Source: “Hong Kong Fencer Edgar Cheung’s strength trainer on the exercises and conditioning that helped him win gold at the Tokyo Olympic Games”, South China Morning Post, 31.07.2021.
Investment involves risk. Not all investments are suitable for all investors. Past performance is not a reliable indicator of current or future results. Please refer to the offering document(s) for details, including the risk factors. Investors should consult professional advice before investing. Investments are not similar to or comparable with fixed deposits. The opinions and views expressed here are as of the date of this publication, which are subject to change and are not to be taken as or construed as investment advice. Estimates, assumptions and projections are provided for information only and may or may not come to pass. This document has not been reviewed by the SFC. Issued by JPMorgan Funds (Asia) Limited.
Basic ideas that help reach your investment goals
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