Short or long term investment: what difference does it make?

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1 min
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By Birdee
Wealth management experts agree: when you invest, especially in financial markets, it’s essential to take the long-term view. If you look ahead five years or less, you’ve got little hope of an amazing gain – unless you rely on luck of course, which is not a great idea when it comes to money. Beyond 5 years, the prospect of making a serious return becomes much more realistic. The reason is simple: the longer your investment period, the more you ride out market volatility. Let's say you have a few thousand euros to place. In the short term, you can hope for some gains but don’t hope for the jackpot! Only experienced traders can afford to take the enormous risks that this entails. If that's what you want to do, Birdee is definitely not the right platform for you. Our portfolios are built with rigour. If you’re investing so you can buy a nice car in five years, we’ll recommend a portfolio that will move you towards this objective as smoothly as possible – without making impossible promises. If you want to grow your savings without a specific objective, invest for more than five years. For example, if you had put 1000 euros into our Dynamic portfolio at its creation in July 2007, after five years you would have made 1251 euros. But if you waited until 2016, you would have almost doubled your capital – with a return of 1905 euros in just under 10 years.

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