What’s Works as your Best Investment Strategy?

What’s Works as your Best Investment Strategy?

Every individual investor is different from the others. What works for some, might or might not work for the others. Just like clothes, you have a custom fit of investment plans and stages which suit you even though it might not suit other investors like you.

Here’s the list of different investment strategies for your contemplation. Find out which is your kind of best investment strategy.

Fundamental Analysis: It is one of the basic investing styles. It is used generally for researching as well as analyzing stocks and equities. Primarily, financial statements are analyzed for the selection of quality stocks. There is a lot of data available from the past and the present which can be compared to arrive at a conclusion about the steady growth of the stocks in future. Check for a business or many businesses in a particular industry and arrive at a valuation for the determination of stocks and their pricing.

Value Investing: Value stocks can be bought for the strategy called value investing. Instead of wasting time in analysis and research of financial statements, value investors invest in index funds, actively-managed funds, and Exchange Traded Funds (ETFs) which provide value stocks. Such investors, generally, are in search of stocks that are available at discounts and which are up for some bargaining.

Growth Investing: As a part of growth investing strategy, it is understood that healthy economies give rise to healthy investment banking practices. In such scenarios, consumers, governments, and corporations- all flourish. Usually, technology companies are good investment avenues. Growth stocks perform extremely well in a market cycle which is in a mature stage. Growth investing can be seen in another strategy called the momentum investment strategy where increasing market momentum of prices is used for buying and selling of securities hoping that momentum will only increase.

Technical Analysis: You can call it working opposite to the fundamental analysis. In this, investor, or for that matter investment banking professionals, leverage charts to mark recent price patterns as well as current market trends for prediction of future patterns along with the future trends. These predictions offer indicators of the way the future is supposed to go.

Buy and Hold: Some investors believe in the practice of staying in the market instead of waiting for the right time to go buying. For this, investors can check with any investment banking professional about which instruments to buy and for what time to wait before selling it to gain the most on its maturity. Short-term period securities are at a high risk of volatility. Usually, it’s opposite to the stance of buying at a low price and waiting for a short time before selling these securities at the maximum price.

What according to you is the best investment strategy? Which one of the above seems like one meant for you? How will any of these work with your budget and long-term/short-term financial goals? When you have answers to all these questions, start investing.

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