Investment Fundamentals
Long-Term Investing
Definition
What is Long-Term Investing?
Holding investments for several years to benefit from business growth, income, and compoundingThe process by which returns earn additional returns over time..
Example in practice
How This Looks in Practice
An investorA person or organisation that commits capital with the expectation of a financial return. keeps diversified equity funds for 15 years toward retirement.
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Related Terms
Investment Fundamentals
Principal
The original amount of money invested or lent, excluding later returns.
Investment FundamentalsCapital
Money or other resources committed to produce income, growth, or another economic benefit.
Investment FundamentalsInvestment
An asset or commitment of money made with the expectation of future income, growth, or both.
Asset ClassesAsset
Anything with economic value that can be owned or controlled.