« Managed Futures Vs Hedge Funds | Home | What are Annuities? »
What are Active Investment Strategies?
By Admin | November 9, 2009
Active strategies requires one to make regular decision on which types of securities to invest in and the total amount of money he/she wish to invest as well as knowing the time when the assets are offered for sale and reinvesting in new equities. Stocks that are undervalued are the best since they offer greatest opportunity for growth above the market averages.
Another strategy that the investors do is to time and purchase the stocks when the value is low and sell when it has gain the greatest value. Not all the investors know how to time and thus very few are successful in market prediction. Investors also attempts to guess those interest rates that are rising and try to sell long term bonds and buy the short term bonds and going for the opposite action when the rates fall for capital gain. Investors also buy stocks that will mature at different times.
Topics: Investments | No Comments »