Why now is a good time to invest

Many investors face a difficult decision: Is now a good time to invest - choosing to delay or abandon investment plans following negative news about the economy.

However, if your investment plan is to build your wealth over the long term, should short-term noise put you off investing now?

If you had invested £10,000 10 years ago, what could this be worth today?

A simple example* to see how the market would have performed is to look at the returns of a leading index such as the S&P 500.

The S&P 500 Index features 500 leading U.S. publicly traded companies. The index is highly regarded as a measure of the overall stock market’s performance.

Since you can’t invest in the index itself, you can invest into an index tracker fund. They work by tracking the composition of the index and its performance.

So if in 2012 a £10,000 investment was made into an S&P 500 Index Tracker, what would the return be?

Using the S&P 500 index in GBP as an example, the total return with dividends reinvested is 372% - that’s 16.80% annualised over the 10 years!

So that £10,000 invested in 2012, would now be worth £53,044**

S&P500 index from Sept 2012 to Sept 2022. Source: spglobal.com

*The index used in this example notes the returns of an equity only index in GBP terms. It is worth noting returns from a balanced, risk-controlled portfolio will likely be more modest but less volatile.

**Not adjusted for fees

Long-term thinking usually pays off

There may always appear to be reasons not to invest and while there is no guarantee what the return will be over the next 10 years, in the long run, the good years in the stock market outnumber and outlast the bad ones. 

How can Spring IM help my long-term investment plan?

We offer a number of globally diverse, risk-controlled solutions to assist you on your investment journey.

Our digital online assessment tool learns about your tolerance to risk and investment objectives, building a portfolio personalised to your goals and giving everyone the opportunity to invest in global markets in a cost-effective and innovative way.

As a client of Spring IM, you also gain access to our revolutionary daily reporting portal, putting you in control.

Learn about the advantages of using Spring IM to invest or contact our friendly team for expert advice. 

With investment, your capital is at risk. The value of your portfolio with Spring can go down as well as up and you may get back less than you invest. Past performance is no guarantee of future results.