Business, Legal & Accounting Glossary
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.”
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
Definitions for Balanced Investment Strategy are sourced/syndicated and enhanced from:
This glossary post was last updated: 4th February, 2020 | 0 Views.