Standard Life Investments' chief executive Keith Skeoch has argued two to five years is the optimal investment time horizon, and investing over a longer period will not necessarily lead to better returns.
Skeoch said research carried out by SLI has found there is no persistency in investment returns over a long time horizon of eight years or more. "There is no persistency in return beyond eight years, instead the sweet spot for an investment horizon is between two and five years," he said. "Bridging this big gap between the long-term needs of savers and the shorter-term returns available in the asset markets is what modern fund management is about, and the pursuit of difficult goals that makes fund management an honourable profession." He added asset managers need shorter time perio...
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