What type of investors would primarily benefit from a buy-and-hold strategy?

A buy-and-hold strategy is best suited for long-term investors who are focused on gradual growth. This investment approach involves purchasing securities and holding them for an extended period, regardless of market fluctuations. The rationale behind this strategy is based on the belief that, over time, the values of these investments will increase, providing substantial returns through capital appreciation and potentially settling in healthy dividend payments.

Long-term investors typically prioritize the overall growth of their portfolios rather than engaging in frequent buying and selling of securities to capitalize on short-term price movements. They are also more likely to sustain through market volatility, thereby allowing them to benefit from the compounding effect of their investments over time.

Investors looking for quick profits or day traders would not benefit from a buy-and-hold approach, as their strategies are centered around capitalizing on short-term price movements in the market. Additionally, while investors seeking regular income from dividends might appreciate certain elements of a buy-and-hold strategy if those dividends contribute to their overall financial goals, their focus is specifically on consistent income rather than the long-term growth aspect that defines the buy-and-hold strategy.