stocks investments, an example of the strategy
Investment strategy is a planning and drawing up of the system, for the implementation of their financial goals. It includes all the documentation on the project, evaluation of the effectiveness and choice of the optimal strategy.
In our time, anyone can use the help of professionals, to achieve their financial goals. Depending on the age, people can take a number of different financial solutions. For example, young people, who possess sufficient for everyday meet their needs incomes, may consider more long-term projects for the investment. They are more prone to risk, for the sake of high and long-term income. And here are people of retirement age, can count only on the amount of their savings, and this is why income on investments will differ significantly from those people.
Statistics show that the welfare of the investor, plays a significant role in his actions. The higher it is, the less a man draws his attention to short-term fluctuations in market prices, and they are ready to take more risks than those who are poorer.
Among the permanent investors there is one simple rule: «Buy cheaper and sell at a higher price», but in practice, it is not at all turns out. If your investment strategy is calculated on a long period, it is very important to keep track of the cycle on the market.
Examples of investment strategies:
Aggressive growth of the invested capital. This view, includes the purchase of shares growth. At the first stage, your dividends will be relatively small, but in the future, when the firm-Issuer will develop and will deliver to the market a new product, your shares significantly ïîäûìÿòñÿ in the price. Here you can also include bonds issued at a discount and policies term insurance. The risk of course is great, but with time he will be justified by high-income groups.
The investment strategy of conservative growth, include the shares of well-known and popular companies. Here you can add convertible bonds and convertible preferred shares. Here the priority is given to mutual and «closed» funds.
Aggressive revenue from your investment. In this category it is recommended to purchase shares of Mature firms that consistently pay dividends, as well as bonds of large corporations. Also here can be attributed redemption of non-residential real estate and the sale of call options on ordinary shares held by the investor.
The main purpose of the conservative income is the preservation of the value of the investment. Here you can restrict himself by purchasing shares of public utilities and industrial companies, as well as Deposit certificates.
The most reliable investment strategy, includes the purchase of money-market instruments. It can be short-term certificates of Deposit or securities with the guarantee of the government. You can also invest in residential property, but your mortgages must be minimal.
