So, if you are waiting for the “right time” to invest, you might be waiting for a long time. There will always be favorable and unfavorable elements in the stock market, and no investment is ever risk-free. The trick is to not let the highs and the lows of the stock market affect your financial portfolio and investments.
We’ve thought about this a lot at Deciml, and we’ll tell you this — the only “right time” to invest — is now. Investing now (of course, with proper research and valid options) allows you to not worry about the timing and focus instead on how much time your investments can marinate and mature over.
And that brings us to the “time” of it all. Simply put — this refers to the amount of time for which you should stay invested in the stock market. The time for which you remain invested is a real concept, with tangible results. We, at Deciml, advise you to look into this one — how much time are you making your investments for? A year? Three years? Five years? It is essential to know how much you are investing, how often, and for how long.
Why? Because how else will you be able to gauge what kind of returns you are looking at?
Another important reason to know how much time you need to make investments is to benefit from the maximum effect of compounding. Remember we had said compounding is the best-kept secret about investing? This is because the longer the duration of your investments (in stock or otherwise), the more your interest will compound over time, and the larger your returns will be.
Ultimately, time is what will help multiply your wealth as you start investing more than anything else.