In finance, an investment strategy is a set of rules, behaviors and procedures, designed to guide an investor in the selection of a portfolio of securities. The strategy is usually designed around the risk-return disadvantage of investors: some investors prefer to maximize the expected returns on investment through risky assets, others prefer to minimize the risk, but most select a strategy in some way. intermediate point.

Passive strategies are often used to minimize the costs of transactions, and active strategies to the extent that market times are an attempt to maximize returns. Example: Buy and maintain Main article: Buy and maintain

One of the best known investment strategies is to buy and maintain. Buying and maintaining is a long-term investment strategy, based on the concept that in the long term stock markets give a good rate of return despite periods of instability or decline. A purely passive variant of the indexation of this strategy is that an investor buys a small proportion of the totality of shares in a market such as the S & amp; P 500, or more likely, in a mutual fund called an index fund.

This point of view also holds that market timing, in which one can enter the market in the low and sell in the high, simply does not work or does not work for small investors, so it is better to simply buy and keep. The smallest of the small investors normally uses the buy and hold as an investment strategy in real estate investment when the period of exploitation is usually the life span of your mortgage.

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