Before starting up any work whether it’s holiday planning, future planning, higher education, starting up a new business, selecting a new job, buying a new house, car, or phone, etc. People plan well in advance to make the right decision when they feel satisfied.
But, to plan for all this one should save his money by investing. But the problem begins from here, the major doubt of every investor is, where to invest the money. One should know the major investing strategies.
Investing your money without the strategies is like dumping your money into the garbage.
6 Most Common Investment Strategies
1. Growth Investing
As the name itself defines the strategies, one should invest their money in growing companies, even if the share price appears high rate in the market but if you feel that the product would come up in the market after a certain period because buying stocks from growing company would bring impressive returns if the companies are successful.
2. Buy and Hold
Time in the market plays a major role in the investment, the best strategies after buying the investment securities and holding them for a long period because holding the securities for a long period will increase overall net returns on the investment.
Also Read: Which Types of Investments Give the Most Returns
3. Invest in what you know
When you plan to invest your money in some company then make sure that you know about the company and have knowledge about the business that they are into. If you have spent many years of your time in a particular field of the industry, then investing in that field would be the best decision.
4. Speak to Someone who has Knowledge
Before making any decision to invest your money, make sure you speak to someone who has complete knowledge about the investment strategies. Once you are under all different types of accounts, then it would be the right time for you to invest your money.
5. Market Timing
Shifting money from one type of investment into another based on factors such as the stage of the economic cycle, the health of the economy, the direction of interest rates, inflation, and stock (share) prices.
6. Socially Responsible Investing
Be clear about your investment goals: Before investing in any company make sure you clear all your doubts, the doubts may be silly but you never know after clearing your silly doubts you may come up with a particular decision. Before investing you make sure you match your objectives to your methods.
These are the major investment strategies that will make you a better value investor. This will help you in reducing your number of mistakes and avoid risk in investment. Continuously reducing your risk in the investment will bring up a positive energy and boost you in long-term investment.
