Balanced investing strategies are portfolio management strategies, which are most widely followed by investors. Balanced portfolio management strategy combines the merits of both aggressive and defensive strategies; so that both return and risks are balanced. This strategy suits almost all types of investors who are good in money management and have reasonable risk tolerance. Balanced investment strategy is perhaps the most followed and successful investment strategy for portfolio management.
Aggressive investment strategy involves investing in high return high risk investments with the sole purpose of maximizing return from investments. It involves allocating major portion of portfolio capital to invest in equities, equity based funds and highly volatile markets. Investors following aggressive investment strategy often look for comparatively short-term profiting and wish to invest more in growth stocks, and small caps and mid cap stocks. Advantages of aggressive investing include quick profit, high return over investment and no need of large portfolio capital. It can work really well for experienced investors and investors who are very strict in their money management. Disadvantages include high risk, high volatility in total portfolio value and no surety of profit. It less supports novice investors and investor looking for monthly earnings or living costs.
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