An investment strategy is a plan that outlines how an individual or organization will allocate their money to achieve specific financial goals. This strategy considers factors like risk tolerance, time horizon, and market conditions. By choosing the right mix of assets, such as stocks, bonds, or real estate, investors aim to maximize returns while minimizing risks.
Different types of investment strategies exist, including value investing, where investors look for undervalued stocks, and growth investing, which focuses on companies expected to grow at an above-average rate. Understanding these strategies helps investors make informed decisions and work towards their financial objectives.