Balanced Investment Strategy

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Definition: Balanced Investment Strategy



Full Definition of Balanced Investment Strategy


A balanced investment strategy is an investment approach that tries to balance shorter-term income with long-term growth. A balanced investment strategy achieves this by combining different types of investments on the theory that if one sector falters another portion of the portfolio will prosper. A balanced investment strategy often includes stocks (individual stocks as well as shares of funds), bonds, cash (often in a money market account), and sometimes metals and even commodities are included in a balanced investment strategy. A balanced investment strategy does not mean that each disparate element of a portfolio is equally weighted at all times. By spreading out risk a balanced investment strategy is designed to prevent a catastrophic loss of investment funds. A balanced investment strategy is the investment equivalent of the old saying: “Never put all of your eggs in one basket.”


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Definition Sources


Definitions for Balanced Investment Strategy are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 4th February, 2020 | 1 Views.