INVESTING STYLES

DIFFERENT STRATEGIES OF INVESTING:

Investment style or investment strategy refers to a particular philosophy followed by an investor, based on which he chooses to invest or not to invest in a particular stock. Such a philosophy is developed through both constant research and individual personality traits on an investor. Some of the factors that determine selection of an investment style are as follows:

  1. Temperament & belief of the investor
  2. Risk Appetite of the investor
  3. Demographic Factors such as age, gender, income, etc.

As of today, there are six accepted investment strategies that are majorly used by investors, as mentioned below:

  1. Growth Investing:
    Growth investing involves seeking companies whose earnings promise to boost their intrinsic value rapidly
  2. Index Investing:
    Index investing involves creating a portfolio of shares replicating a large market segment, such as the SENSEX
  3. Technical Investing:
    Technical investing focusses on market behavior, whether expectations are rising or falling & market trends amongst others
  4. Portfolio Investing:
    Portfolio investing first ascertain their appetite for investment risk and assemble a diversified portfolio of securities bearing that defined risk
  5. Value Investing:
    Value investing refers to the fundamental investment approach wherein the investor analyzes the financial performance to identify stocks priced below intrinsic value
  6. Hybrid Investing:
    Hybrid Investing refers to combining the above mentioned investing styles in a way to achieve optimum portfolio returns by selecting the best components of each strategy and minimizing the risk thereof

At RichVik, we aim to pick the best investing strategy taking into account your goals & risk profile.