Asset Allocation & Risk
What is the 'buy and hold' approach?
النسخة العربية من هذه الصفحة قيد الإعداد. يُعرض المحتوى بالإنجليزية إلى حين اكتمالها.
Buy and hold is a strategy of buying assets and holding them for a long period despite price fluctuations, in the expectation that their value will rise; it is an example of passive management.
Its commonly cited advantage is that making fewer trades can reduce trading costs and the tax burden. However, it presupposes a judgment that the assets held will rise in value over the long term, so what you hold still matters.
This answer is general financial information as of 14/10/2026, not investment advice. Rules and tax rates change, so please also check the latest guidance from the source institution.