An investment strategy is an approach to investing that fund managers take when selecting investments for their funds. Fund managers can choose from a variety of investment strategies, but there are two common ones: active and passive investing.
What are the different types of investment strategies?
Fund managers can choose from a variety of investment strategies, but there are two common ones: active and passive investing. Active investing is when the fund manager individually selects securities based on certain criteria to outperform their respective benchmark or market index.
What makes a good investment strategy?
For example, an investor fully invested in bonds will have different returns from an investor fully invested in stocks. Fund managers allocate assets for their clients based on their goals, and it’s important to know how they do so. Another important aspect of any investment strategy is time horizon.
