Whether you’re looking to start investing or you’re hoping to revitalize your current portfolio with a new game plan, the right investment strategy can build even your minimum investment to increase your annual income and net worth.
From an alternative investing approach like the one offered by Yieldstreet investments or just paying closer attention to the investments you’re choosing to make, you can not only build your funds but you can become a better investor in general.
Growth Investing
In following a growth investing strategy, you would seek out stocks with projected potential. As analysts study the stock market, they determine that certain investments—growth stocks—are likely to perform well in the future, whether a company is expected to expand or a product line is expected to do well. With this potential, investors follow this strategy with the assumption that the stock will follow through and perform well over time, bringing great returns along the way.
Value Investing
A sort of foil to growth investing, value investing looks to stocks that are trading at a price that’s lower than the professionals consider them to be worth. Using coming from more established, larger companies, value stocks are currently undervalued and expected to rise. Sometimes, this situation arises after a scandal has lowered customer opinion for a certain brand. In this case, the company’s finances are stable despite the fall in public opinion and investors remain confident that its value will rise once more.
Momentum Investing
In momentum investing, you must pay attention to the market—and, more particularly, its trends. Advocates of this method point to its high returns as a primary reason an investor would opt for this method. This investing strategy involves a plethora of technicalities but, if done properly and accompanied by adequate research, can pay off.
Income Investing
If your goal is to increase your annual income, then income investing is likely the best choice for you. With this strategy, you’ll be choosing the assets that will bring you the most earnings with the minimum risk. Combined with your other income streams, such as your annual wage, earnings from any side hustles you might have, and anything you earn from your savings accounts’ interest rates, you’ll accumulate a welcome total come year’s end.
Small-Cap Investing
Small-cap, or small market capitalization, stocks are those whose total market value of outstanding shares falls between $250 million and $2 billion. While small-cap stocks are volatile (meaning they come with greater risk) and involve a greater investment of time upfront, their growth potential is high, which means the effort and stress may very well be worth it in the end.
Socially Responsible Investing
Like other investing strategies, socially responsible investing looks to the company behind the shares, considering its mission, values, and overall social impact. By investing in companies that reflect your values, or those of the general sociopolitical climate, you can feel good about the money you’re putting in, and the alternative investment funds you’re earning. Still, It’s important to remember that a socially responsible investment should still be one that pays off— so, do your due diligence to make sure you’re making not just a socially conscious decision, but a financially smart one.
Whether you’re figuring out how to calculate your borrowing power before investing in real estate with a new loan or you’re simply trying to build your savings with some hefty dividends, the right investment strategy can revolutionize your portfolio—and your general financial health.
By comparing these top strategies and others like them, you can achieve a substantial savings account, lofty credit score, or the overall financial situation of your dreams, if not taking your financial goals beyond the limits of your imagination.
