Benchmark Investments

In the ever changing world of investments there are many investments strategies, Finding and focusing on investing strategies that resonate with you is its depend on investor what choice, however its largely depend on investor knowledge, understanding , what degree of risk he is ready to take & return expectation . All Investment strategies have their own strengths and weaknesses, which allows you to evaluate and compare them, this helps when deciding on the right investment strategy given your financial situation, knowledge, and goals. Investors always advice before investing must understand about advantage, disadvantage, risk verses returns

Most successful investors have taken these types of strategies and made them their own by drawing from their own experience and research. As a retail investor you have the advantage of size and flexibility. You can build on this edge by developing your own unique strategy by building on one or two of these investing methods.

Lets find some of popular investing strategies below.

Buy and Hold Investing

As long as markets have existed, many investors have tried to maximize gains and minimize losses by timing the market.

Investors believe they should buy when prices are low but rising and sell when prices are high but falling. However, to time the market perfectly, you have to be successful twice: once when you buy and then again when you sell. Getting the timing right on both ends is doubly difficult. Plus, every time you trade, you incur costs such as brokerage fees and taxes, which can quickly reduce any additional returns you’ve gained on both the purchase and the sale.

Buy and hold is a passive investment strategy in which an investor buys stocks the stocks, bonds, mf units, etf and holds them for a long period regardless of fluctuations in the market. An investor who uses a buy-and-hold strategy actively selects investments but has no concern for short-term price movements and technical indicator. Many legendary investors such as Warren Buffett and Jack Bogle praise the buy-and-hold approach as ideal for individuals seeking healthy long-term returns.

Growth investing

Growth investing is a style that emphasizes on companies which are projecting higher growth rates. These companies tend to perform and showcase growth irrespective of the market conditions. They perform even when other companies are impacted by market conditions.

They have better USPs and continue to outperform its competitors. Investors are attracted by such companies due to its future growth potential. The stock prices of such companies are also higher and are considered expensive.

Momentum Investing

The technique of purchasing and selling securities based on the strength of recent market trends is known as momentum investing.

It is predicated on the concept that if a price move has enough momentum behind it, it will continue in the same direction.

When an securities reaches a higher price, traders and investors are more likely to pay attention to it, pushing the market price even higher.

This continues until a large number of sellers enter the market, such as when an unexpected incident prompts them to reconsider the asset’s price, when there are enough sellers in the market, the momentum shifts and the price of an asset falls.

The main goal of fundamental-driven, long-term investing is to “buy low, sell high.” Whereas the purpose of momentum trading is to “buy high and sell even higher.”

But how do we identify if there is momentum in the stock or not? There are many momentum indicators that help us to analyses stocks having the momentum to solve this issue.

Value Investing

Value investing is an investment strategy that focuses on stocks that are underappreciated by investors and the market at large. The stocks that value investors seek typically look cheap compared to the underlying revenue and earnings from their businesses. Investors who use the value investing strategy hope the stock price will rise as more people come to appreciate the true intrinsic value of the company's fundamental business.

The greater the difference between the intrinsic value and the current stock price, the greater the margin of safety for value investors looking for investment opportunities. Because not every value stock will turn its business around successfully, that margin of safety is important for value investors to minimize their losses when they're wrong about a company.

Small Cap Investing

Small-cap investing focuses on companies that have smaller market caps than most stocks. Since these companies are worth less than large-cap or mid-cap stocks, they tend to be more volatile and carry more risks, but they also offer greater potential reward.

Dividend Investing

Dividend-paying stocks tend to be more defensive and outperform growth stocks in periods of high inflation, high interest rates, and economic uncertainty. The objective of dividend investing, also known as income investing or yield investing, is to generate an income stream. Stocks with high dividend yields are usually very profitable but have relatively low growth rates. As a dividend investor, your job is to find companies with good yield that will be able to continue paying dividends. If the company is able to increase its dividend yield, that’s even better.

Dividend investment strategies are not just about generating income. If dividends are reinvested, a yield portfolio can experience substantial capital growth too. Companies that pay dividends are typically quite profitable and therefore also defensive during recessions.

Passive Investing

Passive investing is investing for the long term when you follow a set of rules rather than picking individual investments

Passive investing is a strategy to maximize returns by minimizing buying and selling. Its goal is to build wealth gradually with the assumption that financial markets have positive returns over time. Index investing in one common passive investing strategy whereby you buy a representative benchmark, such as the BSE 500 index, NIFTY 50 index, Index funds, etc. Aactive Investing is vice versa of passive.

Multi Asset Investing

A multi-asset strategy combines different types of assets, such as stocks, bonds, real estate or cash to create a more nimble and broadly diversified portfolio. As the name would suggest, they do this by investing in a range of different asset classes - including equities, bonds, cash and alternatives. The idea behind this diversified approach is that these asset classes will behave differently to one another as market conditions change, providing a degree of protection in times of market stress, but also with the ability to participate in the upside potential of strongly performing markets. While multi asset investing has evolved over time, the aim has remained constant - it’s about delivering attractive returns or income streams at lower levels of risk.

Rupee Cost Averaging

Rupee Cost Averaging is the practice of adding money into your investments at regular intervals. For example, you may determine that you can invest Rs 1000 a month. So each month you put Rs 1000 to work, regardless of what the market is doing. Or maybe you add Rs 500 each week instead. By regularly purchasing an investment, you’re spreading out your buy points.

SIP is best example of Rupee Cost Averaging, Equity Market by nature, is volatile, so the investor may invest in funds at a different price point. Rupee cost averaging is the technique by which an investor can average out his/her buying price in mutual funds.

Choose the best investment strategies which are ideal for you.

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