There’s a wealth of investment strategies from which to choose, which make more or less sense based on your tolerance for risk, investment goals, time horizon and other factors. You may decide to invest passively or actively, depending on those same factors.

The most common investment strategies include the following:

  1. Growth Investing: You invest in companies you think will become even more valuable over time and, therefore, increase in price, which yields high returns.

  2. Value Investing: You invest in “discounted” companies you think are undervalued and underpriced now but should be recognized soon enough. When stock prices increase, so do your returns.

  3. Income Investing: You invest in securities that provide an immediate, steady source of income rather than equities that could theoretically increase in value over time.

  4. Momentum Investing: You closely watch the market and bet on patterns and discrepancies in financial reports.

  5. Dollar-Cost Averaging: You invest regular amounts of money at regular intervals, without trying to time the market.

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