5 Share Market Investment Strategies

Published : 13 Mar 2023

 1.  Buy and Hold

A buy-and-hold strategy is a classic strategy in which ou buy an investment and then hold it indefinitely. Ideally, you’ll never sell the investment, but you should look to own it for at least 3 to 5 years. Success of this strategy depends on the temptation of need of selling it for a small profit and the performance of the company

2.  Buy Index Funds

This strategy is all about studying the index performance and then buying an index fund based on it. Buying an index fund is a simple approach that can yield great results, especially when you pair it with a buy-and-hold mentality. However, you’ll only get the average return of all stocks part of the fund, and not the return of the hottest stocks. 

3. Value Investing

Value Investing strategy involves the investors seek out stocks that are being traded that do not comply with their intrinsic value. Investors purchase stocks when they are undervalued and sell them when the stocks reach their intrinsic value or higher. The investor has to be patient and wait till the price of the share rises, which maybe after a year or a few years.

4.  Income Investing

Income investing is owning investments that produce cash payouts, often dividend stocks and bonds. Income investments tend to possess lesser risk than other kinds of investments, and you have the safety of a regular cash payout from your investments but they are still stocks and can fall too due to varied reasons.

5.   Growth Investing

This strategy focuses on capital increment. Investors employing this strategy usually purchase stocks of companies that exhibit signs of above-average earnings increments relative to the market or their industry sector. Usually, these companies are young or small and emerging with high prospective returns, posing a higher risk.

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