The purpose of a defined contribution pension plan is to build assets for post-work life.

Therefore, the investment period in a defined contribution pension plan is long.

The key to the investment is to have a medium- to long-term perspective without being bothered by short-term price movements.

 

By having a long investment period, the fluctuation of return (risk) tends to be smaller as the high and low returns will equalize over time.

Even with investment products where short-term fluctuation of return is high, "long-term investment" has the effect of generating stable returns.