Investment Strategy is traditionally considered to be a key part of finance, as opposed to economics. Your Investment Strategy is typically a set of rules of guidelines you follow as an investor in order to reach a decision on your portfolio of investments. It is influenced heavily by the investor’s risk-return perception as some investors will be more risk-averse or will prefer to invest in high risk assets in order to maximize their potential returns, whereas others may choose minimal risk in order to not risk losing their funds. There will also be those who choose a more average approach in between these two extremes. For example a small retail investor will generally invest in real estate for the lifespan of their mortgage as an investment strategy with average risk.
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