| The final frontier of all investment strategies is to | | | | substantial results. If you turn the pages of the |
| beat the market. The strategy that is fine when | | | | share market history, you find that the shares |
| the market conditions are normal will be swept | | | | have moved upward, resulting in capital |
| under the carpet, when the market turns volatile. | | | | appreciation, notwithstanding the market crash |
| Such conditions began during the last quarter of | | | | (1929), market break (1987) and market |
| 2008, and the unpredictable volatility continues till | | | | corrections (1989), when the prices of shares fell |
| this day. The best of the analysts failed in their | | | | substantially. Subsequent to these declines, the |
| strategies. Almost every international share felt | | | | market recovered and gained new heights. Forget |
| the pain. | | | | the highs and lows, the investors with long-term |
| A thorough overhauling of the strategies, a | | | | perspectives have always gained. |
| serious re-examination, is being done by every | | | | One need to view from all angles while making |
| class of investor, financial institutions and brokers. | | | | selection of shares for buy and hold strategy. |
| The sweet recollection of the past, the Bull Run | | | | Scrutinize closely whether the company deserves |
| during which investors had a heyday, has made | | | | your long-term trust, taking into consideration the |
| the issues worst for the investor. One is | | | | changing technological scenario. Whether the |
| struggling to bail out from a bad condition. Every | | | | management is innovative enough to meet the |
| type of strategy, the existing one or the one | | | | challenges and retain its position in the market. |
| which is revised, requires constant work and | | | | What are the plans of the company for the long |
| vigilance. | | | | term growth? You will get all such information in |
| Simple investment strategies can be long germ or | | | | the quarterly/annual reports published by the |
| short term depending on the goals of the | | | | company. It does not take much time for a |
| investor. Some of the simple long-term strategies | | | | blue-chip share to lose its luster, income shares to |
| are: | | | | lose the income etc. Even while pursuing a |
| Passive investing | | | | particular strategy, you can be conservative or |
| Fundamental Analysis | | | | aggressive. Strategy is important, but the man |
| Technical Analysis | | | | behind the strategy who implements it, is more |
| Market timing | | | | important. |
| Check asset allocation | | | | One undeniable advantage of the buy-and-hold |
| Pick a plan. | | | | strategy is the compounding effect of the |
| The present volatility of the market is a grim | | | | dividend reinvestment plan. Instead of drawing the |
| reminder of the magnitude of losses that an | | | | amount of dividend, you direct the company to |
| investor is likely to suffer within a short period. | | | | buy additional shares. This is the sure method to |
| The importance of proper asset allocation and | | | | build your capital base. But you need to consider |
| creating diversified portfolio assume importance. | | | | implication and burden of paying taxes on your |
| The segment-wise approach would have saved | | | | dividend income. |
| damage to the portfolio to some extent, as even | | | | Following any simple strategy is not the end of |
| during this severe recession, some of the | | | | the road of investment. Rather, it is the beginning. |
| industries are doing extremely well. | | | | With every trade, you learn new lessons. |
| As for passive investing, it's almost a | | | | Buy-and-hold does not mean that you totally |
| set-it-and-forget-it strategy. This is ideal for those | | | | neglect the health of the shares. You have to yet |
| with a long-term perspective of investment. | | | | keep a close watch; but your objective is |
| There is no simple investment strategy that can | | | | long-term, but it should never take you to |
| be emulated by everyone. The strategy one | | | | long-term loss. |
| chooses should be in tandem with the investment | | | | Whatever be the simple investment strategy |
| objectives, risk tolerance and financial limit. One of | | | | adopted by you, it demands all the study and |
| the popular strategies is: | | | | research that goes with the share trade. The |
| Buy and hold: Buy high quality shares and hold | | | | word relaxation does not befit the share market |
| them for the long term. This strategy yields | | | | investments. But discipline and patience do! |