D.34 Investment strategies Flashcards

An investment approach that aims to replicate market returns by tracking an index, often through exchange-traded funds (ETFs) or index funds, rather than actively selecting securities.

An investment strategy that involves selecting individual securities or timing the market to outperform a benchmark index, often managed by portfolio managers or individual investors.

A strategy that focuses on investing in companies expected to grow at an above-average rate compared to the market, often with high price-to-earnings (P/E) ratios.

An investment strategy that involves buying undervalued stocks with strong fundamentals, typically identified by low P/E ratios and high dividend yields, with the expectation of long-term appreciation.

A strategy in which an investor regularly invests a fixed amount in a particular security or portfolio over time, reducing the impact of market volatility.

A dynamic investment strategy that allows short-term deviations from a strategic asset allocation to capitalize on market trends and economic conditions.

A long-term investment approach that sets a target mix of asset classes and periodically rebalances to maintain the intended allocation, regardless of short-term market fluctuations.