Investment Strategy

An investment strategy is a plan or approach designed to achieve specific financial goals by investing in a particular mix of asset classes, such as stocks, bonds, or real estate. Strategies vary based on an investor’s risk tolerance, time horizon, and financial objectives. Common investment strategies include value investing, growth investing, income investing, and diversification. A well-defined strategy helps investors manage risk and optimize returns over time.

Example

A young investor with a high risk tolerance adopts a growth investment strategy, focusing on high-growth stocks that offer potential for capital appreciation.