I often hear clients asking what is the best investment strategy for their particular circumstance and it Raises the question. What is the best Investment Strategy?
My response is always “All of them”. How can I say that? Well a diverse wealth portfolio will always provide the best of all worlds.
I have a friend who will swear black and blue that Property is the way to invest. Well there are actually two types of property investors. The “passive” investor is the type of property investor that buys a property with a view to collect the passive income and accumulate capital growth over the long term. An active Property investor is the type of investor that actively looks for deals coming onto the market, will purchase an option on that home, usually with extended settlement and then sell for a profit.
Some choose the stock market. There are also two ways to invest into the stock market. Most Mum and Dad type investors look at purchasing a “Blue chip share” with the long term view of holding that share for the long term, again the strategy here is to earn long term growth. The second option within stocks is to choose a short to mid term investment strategy and trade on a day to day scenario. This type of investment strategy can be one of the most thrilling and exciting strategies there is. It also carries with it the most risk and those that become victims of the global financial crisis are testament to that risk.
Business is also an excellent investment strategy. It is an often overlooked way to invest funds, however there are more and more vehicles becoming available to invest into multiple levels of business with minimal risk and maximising returns.
The key to any investment strategy is to choose wisely and diversify your portfolio. Even starting on a small scale, you can choose to invest into “smart” investments that minimise risk and maximise your return. The trick is to do your homework, set goals and choose wisely.