Investing Strategies for the Wise

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What are investment Strategies?

An investment strategy is a systematic plan or set of principles designed to guide an investor’s selection of an investment portfolio. It helps investors achieve their financial and investment goals based on risk tolerance, future capital needs, and profit objectives.

There are different types of investment strategies for appealing to different kinds and values of people.

Follow ahead to read about a few of them

Value Investing

This strategy involves looking for stocks that appear to be trading for less than their intrinsic or book value. Investors seek out companies that are undervalued by the market and therefore expected to provide a good return on investment over time.

Growth Investing

Growth investors focus on companies that exhibit signs of above-average growth, even if the share price appears expensive in terms of metrics such as price-to-earnings ratios. The expectation is that the company’s growth will continue at an above-average rate, and the investment will therefore increase in value.

Momentum Investing

Momentum’s strategy aims to capitalize on the continuance of existing trends in the market. it involves buying securities that are rising in price and selling them when they appear to have peaked.

Check out blog post to know about more related terms

10percentfinance - Investment Strategies