It has always been a saying and belief that slow and steady investments will yield fruitful results in the long run. One should always invest their funds in a balanced manner by diversifying their portfolio. This will help the investor to eliminate or minimize losses.
An investment scheme with high-profit returns will definitely involve more risks. Traditionalists say that aggressive investment in the market is never a clever move. But it is a myth. Aggressive investment strategies can also yield fruitful with minimal risks involved.
Aggressive investment strategies are generally undertaken by the youth who prefer to maintain a smaller portfolio and generate a high profit from them. With precautionary measures and the right skill set, one can protect their funds using smart aggressive investment strategies.
5 Pointers to Keep in Mind before Making Aggressive Investment
1. Newcomers of the Market
An aggressive portfolio is defined on the grounds of the risk value of the investments made in equities, stocks, etc. The degree of risk exposure in a portfolio is also dependent on the market position of the company. Small and Micro cap companies involve risks, however, the companies struggle by themselves to prove their mettle in the market.
As an investor, one must study their growth graph, goodwill, and their performance in the stock market before opting for any aggressive investment strategy. One can also visit the Angel One website to learn more about investing strategies to become a ‘Very Smart’ investor in the market.
2. Debt Instruments
Generally, debt instruments are considered the safest option among all the investment options. One can invest in bonds, fixed deposits, etc, and decide whether they desire a regular income or security of their principal amount. If you want to aggressively invest your funds, you can invest in debt instruments because they will become the bedrock of your investment portfolio. But the returns will not be highly profitable.
3. Trading in Options
Options are a type of securities where investors can park their funds against a security for a specific time period. This aggressive investment strategy will be a smart move as it will safeguard your funds when the stock market declines, however because of leverage, there is a high degree of risk involved in this strategy.
Trading in Options involves a specific understanding of the market. The prices of securities vary and the right prediction at the right time will yield good results and vice versa.
4. Foreign Markets
Another aggressive investment strategy involves an investment of funds in the global market. There are many companies in the global market that are offering high profit-yielding opportunities with a high degree of risks involved. Considering the companies are operating in foreign economies, the market trends may have a sense of unfamiliarity. Therefore it is advisable to research, study, and analyze foreign markets first and then make investments.
Angel One’s partnership with Vested makes it possible for investors to invest in the US market. Investors can take advantage of zero commission investments and expert-curated portfolios.
5. Equity Investments
For investors who have the financial capacity to invest on a large scale, they can opt for this aggressive investment strategy. Making lump-sum investments in equities is a long-term investment. Investors can leverage Angel One’s ARQ Prime – a rule-based investment engine – to invest in recommended stocks that include value stocks, high momentum stocks, growth stocks and quality stocks.
Conclusion
To make aggressive investments in the market is not everyone’s cup of tea. If you can cleverly invest your funds using these smart strategies, you can minimize the risks involved. Angel One’s website offers guidance and smart investing strategies to help investors make smarter investing decisions.