investment strategy

investment strategy definition - finance
A strategy for allocating investments among different categories, such as stocks, bonds, and cash. The decisions are made based on the investorÂ’s expectation about each categoriesÂ’ potential performance and the investorÂ’s tolerance for risk. Before an investment strategy is formed, investors have to know what their goals are, such as buying a home or saving for college or retirement.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.