Investment Strategy

Business, Legal & Accounting Glossary

Definition: Investment Strategy


Investment Strategy

Quick Summary of Investment Strategy


An investor’s plan of distributing assets among various investments, taking into consideration such factors as individual goals, risk tolerance and horizon.




Full Definition of Investment Strategy


An investment strategy is an investment approach taken to effectively allocate funds and assets for the purpose of reaching optimal returns.

A given investment strategy can utilize a number of investment instruments. An investment strategy may encompass real estate, stocks, bonds, commodities, as well as cash and currency. When outlining an investment strategy, individual investors may take into account numerous quantitative and qualitative parameters. Thus, depending on an investment vehicle, a sound investment strategy might include measures such as PE ratios, market capitalization, profitability, industry competitiveness, and corporate management. Those who don’t consider themselves investment strategy specialists may turn to professionals for help. Financial advisers, portfolio and fund managers, and other investment strategy experts help investors generate ample returns by performing technical analysis, diversification, as well as analyzing such factors as economic growth, interest rates, and inflation.


Examples of Investment Strategy in a sentence


You should come up with a good investment strategy and then try to stick with it through the ups and downs.

My investment strategy while I am young is a broad mix of stock ETF’s and international funds to hopefully achieve a 12% return for the next forty years.

Her new investment counselor explained that her wisest investment strategy would be one that took into account her goals,while incorporating a moderate amount of risk, by apportioning the amount of income she was willing to allocate over a varied array of investments, covering different industries and imbued with different degrees of risk.


Related Phrases


index ETF
conservative growth
buy and hold
taking the street
investment analysis
indexing
tax arbitrage
balanced investment strategy
Halloween Strategy
call ratio backspread
defensive investment strategy
balanced investment strategy
investment strategy committee


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Definition Sources


Definitions for 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: 5th November, 2021 | 0 Views.