Asset Allocation & Risk
What is the 'buy and hold' approach?
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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.