The investment strategy of balanced investment strategy, is perhaps the most popular portfolio management and successful. A balanced investment strategy combines the merit of the investment strategies of aggressive and defensive.
Aggressive investment strategy is to invest in high risk high yield, with the sole purpose of maximizing return on investment. Advantages of aggressive investing include quick profit, high return on investment and portfolio investment, with little capital. We must invest in low risk investments to reduce benefits, such as bonds, money market funds, Treasury bills and shares with minimum price volatility and good dividends. Defensive investors seeking long-term benefits and / or monthly income. Advantages of defensive investment strategy include reduced risk, predictable income, and better investment planning and portfolio diversification.
Disadvantages include low return on investment and large capital investment needs. In the balanced investment strategy, the investor seeks to maintain a balance between aggressive and defensive. This balancing of both return and risk by diversifying the investment return is the return on investment in high-risk high and low risk. Balanced investment strategy can be a bit aggressive or defensive slightly from the investment.
The greatest advantage of balanced investment strategy is portfolio diversification and hedging against the volatility of the portfolio total height. Balanced investment strategy support both beginners and experienced investors and can be an option for a monthly income for life.