Introduction
1. Long-term investing
Time can be an investor’s best friend. It is important for investors to start saving and investing early in order to maximise the benefits of compounding. For example, if a young investor allocates HK$3,000 every month for long term saving and investment, and assuming an annualised return rate of 5.5%, there is the potential to grow the investment to HK$1.307 million in 20 years.

2. Staying invested
Some investors are often challenged by their emotions and natural biases, and can make ill-timed investment decisions after surrendering to their heightened emotions. Moreover, it can be tough to accurately time a market entry or exit, and frequent trading may risk losing out on opportunities and returns. Investing regularly can help investors take advantage of “dollar cost averaging” while navigating market volatility.

3. Diversification in investing
No single asset class can be an all-time winner. Investing all funds on a single or a small number of assets could increase concentration risk. Through active investing, investment professionals could employ different strategies to add equities, bonds or other types of assets in a mutual fund portfolio to capture potential opportunities and optimise the benefit of diversification.