What is an investment strategy?

An investment strategy is fundamentally a plan that outlines how resources should be allocated to achieve specific investment goals. This includes determining the types of assets to invest in, the timing of those investments, and how to manage risks associated with those investments. A well-defined investment strategy takes into consideration various factors such as the investor's risk tolerance, investment horizon, and financial objectives, guiding the investor in making informed decisions that align with their financial aspirations.

While avoiding financial risks, ensuring guaranteed returns, and establishing a savings schedule can be important components of overall financial planning, they do not encompass the broader scope of what an investment strategy entails. Avoiding financial risks is only one part of the strategy, and essentially, investments inherently carry some level of risk. Similarly, there are no guaranteed returns in investments, as markets can fluctuate, and performance can vary. Lastly, a schedule for regular savings contributions is related to saving practices rather than the specific strategy for investing those savings. Thus, the essence of an investment strategy lies in the systematic planning and resource allocation to meet investment objectives.