Investment strategy

Investment strategy refers to a set of principles and tactics used to guide an investor's selection of an investment portfolio. Investors use these strategies to help them achieve their financial goals, manage risk, and take advantage of market opportunities. Common investment strategies include value investing, growth investing, and index investing, among others. Each strategy has its own approach to asset selection, allocation, and timing, tailored to the investor’s risk tolerance, time horizon, and financial objectives. Developing a robust investment strategy is crucial for long-term financial success, ensuring a balanced and diversified portfolio that can weather market fluctuations while aiming for consistent returns.