Essay on Investment Strategies For An Investment Strategy

784 Words Nov 30th, 2015 4 Pages
Figure 1 Portfolio Allocation
Investment Style: There are different investment strategies which can be followed in order to formulate any investment decision. Every investment strategy has its own advantages and disadvantages. Some of the most common investment strategies include risk averse investment strategy, portfolio investment strategy, value investing investment strategy, asset allocation investment strategy, individual investment strategy, and many more. Some of these investment strategies are implemented at long term while some of these investment strategies are implemented in short term. Usually, a period of less than one year is considered to be a short term period while a period of more than one year is considered to be a long term period. As this project was having a timeline of short term period, that is why short term investment strategies has been used in this project. The most commonly used short term investment strategy involves buying and selling of stocks. In such investment strategy, return is realized from fluctuation of security prices. Stocks are bought at low prices with an expectation that the price of that stock will increase in near future. With the increase in price of that stock, the stock is sold back in market. The difference between the low price of the stock and high price of the stock is the capital gain for the investor. This type of investment strategy is mostly used by short term investors. This project formulated portfolio of…

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