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Benefits Of Long-term Investment Strategy In The Equity Market - Investment - Nairaland

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Benefits Of Long-term Investment Strategy In The Equity Market by BrandSpurNG: 9:57pm On Feb 12, 2018
FSDH Research recommends that investors should maintain long-term investment strategy in the equity market. This will help to hedge against portfolio losses associated with short-term stock price volatility.

Our analysis of historical returns shows that investors make good returns in the equity market if they invest in
stocks that have strong fundamentals and maintain a long-term view. An investor who maintains a long-term strategy will earn capital appreciation, cash dividend and/or bonus over the investment horizon.

Our analysis of the yearly returns of the equity market as measured by The Nigerian Stock Exchange All-Share Index (NSE ASI) between 2008 and 07 February 2018 shows that the market recorded both losses and gains during the period. Although the equity market depreciated in more years than it appreciated, some
stocks recorded returns in excess of 1,000%.

An analysis of the total return of an initial investment of N100,000 each in the ten highest capitalized stocks (except Dangote Cement and Seplat) between December 2008 and 07 February 2018 shows that GT Bank recorded the highest return of 1,100%. FBN Holdings recorded the lowest return of 45%. We excluded
Dangote Cement and Seplat from our analysis because the two companies were not listed on the floors of the NSE in 2008.

The breakdown of the total return in the GT Bank stock shows that capital appreciation, cash dividend, and bonus issue contributed 33%, 20% and 47% respectively. FBN Holdings recorded the lowest performance because of a capital depreciation. The breakdown of the total return on the selected stocks shows that capital appreciation contributed the highest return, accounting for 54% of the return. Bonus and cash dividend contributed 26% and 20% respectively.

FSDH Research advises investors to engage their investment manager before they invest in the equity market. The investment manager will create an equity portfolio for the investor based on his investment objectives. The client will also benefit from the experience of the investment manager.

 

SOURCE: https://brandspurng.com/benefits-of-long-term-investment-strategy-in-the-equity-market/

Re: Benefits Of Long-term Investment Strategy In The Equity Market by donmarshia(m): 8:19am On Feb 13, 2018
So it took 10 years to get a 1,000% return in the equities market.

You can get same in 2 months in the crypto market.

Yet risk level for both is same in my opinion.
Re: Benefits Of Long-term Investment Strategy In The Equity Market by rodeo0070(m): 7:36am On Feb 14, 2018
Not bad...

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