DEFENSIVE INVESTMENT STRATEGY

-



Defensive investing means investing in strategy that will minimize loss of capital in a portfolio. The primary objective of defensive investment strategy is the preservation of capital.

A defensive investment strategy involves regular portfolio rebalancing to maintain the desired asset allocation.

There are a number of defensive strategies an investor or portfolio manager can employ to mitigate against losses such as investing in infrastructure funds like that of FG sukkuk bonds, treasury bills, blue chip stocks and stable values such as gold, platinum and silver.

Investor will be protected against significant losses from major market downturns by buying defensive stocks, engaging in short term treasury bills, trading across countries, placing stop loss order and holding cash especially in down market and finally spreading the entire portfolio across a number of industries to reduce risk through diversification.

Investdata Academy

Comments

Post a Comment

Popular posts from this blog

Wherever You are NOW is Your Decision

-
Image
                                        Photo credit: entrepreneurfail According to research, very few people are successful at anything at first. I included. The reason only a tiny percentage of the population achieves any significant success or wealth through stock is that few are willing to go through the process of what it takes to achieve in the stock market, and there is no shortcut. In fact, everybody has to go through four levels of learning every single time, and often, in the process - fail, regroup and begin again. Most people blame others like government policies, currency fluctuation, political instability, the election for stopping their progress, but in truth, there's only one person who can put on the parking break and that person is YOU. Furthermore, many people drive around with the break on without knowing it, or once awareness arrives, don't know how to lif...
Read more