Asset Allocation & Risk

What is the 'buy and hold' approach?

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.

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This answer is general financial information as of 2026.10.14, not investment advice. Rules and tax rates change, so please also check the latest guidance from the source institution.