What is a key benefit of long-term investments?

"They offer guaranteed high returns." "They eliminate the need for financial planning." "They help secure funds for future goals." "They are only suitable for experienced investors."

Why is diversification important in a long-term investment strategy?

"It ensures all investments will be profitable." "It simplifies investment management." "It helps maximize returns over time by spreading risk." "It guarantees a fixed rate of return."

What is a crucial step in creating a long-term investment portfolio?

"Copying successful investors' strategies." "Investing in the latest market trends." "Defining your long-term goals and risk tolerance." "Focusing solely on high-risk, high-reward investments."

According to the article, what is a common misconception about long-term investments?

"They are only accessible to wealthy individuals." "They require constant monitoring and adjustments." "They are too complex for average investors." "They always yield higher returns than short-term investments."

What is a recommended approach for investors new to mutual funds?

"Investing all funds in a single high-performing fund." "Relying solely on past performance to predict future returns." "Conducting thorough research and understanding risk profiles." "Avoiding diversification to maximize potential gains."