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Advantages of Investing in the Stock Market - Budgeting Money

While you can make money quickly with a short-term investment strategy, it can entail significantly higher risks.

In addition to greater potential risk, there are other disadvantages to short-term investing. Short-term capital gains are taxed differently than long-term capital gains. Short-term earnings are taxed at your regular federal income tax rate. The rates for long-term capital gains are lower.

9 Advantages of Long-Term Investing -- The Motley Fool

Holding onto your investments for only a short while can also incur other expenses. For example, you may be charged higher brokerage commission fees.

In addition, if you are a speculator, you will have to pay many more transaction fees for all that active trading, thus reducing your returns. Inflation can also be a concern, especially with securities such as short-term bonds. Another disadvantage to short-term investing is that it's not always possible to earn profits in a short period.

Many investments may fall in the short term but grow steadily over the long term with increasing returns.

Even if you're lucky enough to make gains on your short-term investment strategy, remember that you will have to subtract taxes and transaction costs to determine your true profits. Those funds with the most consistent return within their classification were declared the winner over three, five, or 10 years.

For a detailed explanation, please review the Lipper Fund Awards Methodology document at www. Used by permission and protected by the Copyright Laws of the United States.

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The printing, copying, redistribution, or retransmission of this Content open market exchange rate pak rupee express written permission is prohibited. For the Award: Past performance is no guarantee of future results, which will vary. For the most recent MainStay Funds performance, please visit our web site at mainstayinvestments.

All mutual what are the advantages and disadvantages of investing in the stock market long term are subject to market risk and will fluctuate in value. Class I shares are generally available only to corporate and institutional investors. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating TM based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly performance including the effects of sales charges, loads, and redemption feesplacing more emphasis on downward variations and rewarding consistent performance.

Fund loads and 12b-1 fees aren't included in the calculation of returns because the aim is to measure the manager's skill. To determine the overall rank for each fund family, Lipper calculates a weighted overall return based on the overall asset mix in Lipper's database.

Overall, MainStay Funds ranked number 28 for the one-year period, 22 for the five-year period, and seven for the year period ended December 31,out of 64, 55, and 48 fund families, respectively. MainStay ranked number what are the advantages and disadvantages of investing in the stock market long term from among 46 fund families for the year period in MainStay ranked number three for the year period in, and from among 48, 46, and 45 fund families, respectively.

MainStay ranked number six from among 48 fund families for the year period in MainStay Investments, an indirect subsidiary of New York Life Insurance Company, New York, NYprovides investment advisory products and services. Investors are asked to consider the investment objectives, risks, and charges and expenses of the investment carefully before investing.

The prospectus or summary prospectus contains this and other information about the investment company. Please read the prospectus or summary prospectus carefully before investing. Investors Account Access Login Applications and Forms Investing in MainStay Funds Understanding Statements Tax Information Proxy Voting. Mutual Funds Featured Funds MainStay Convertible MainStay Cushing MLP Premier MainStay Cushing Renaissance Advantage MainStay Epoch Global Equity Yield MainStay Epoch U.

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