Diversification reduces risk by spreading investments across various asset classes, sectors, or regions to minimize the impact of poor performance in any one area.
Growth strategies focus on investing in companies or sectors with high potential for capital appreciation, typically with higher risk.
Asset allocation is the process of dividing an investment portfolio among different asset classes to balance risk and reward.
The buy-and-hold strategy involves keeping investments for a long duration to benefit from steady growth and compounding returns.
Value investing focuses on identifying undervalued stocks that are expected to increase in value over time, offering a margin of safety.
Rebalancing involves adjusting the portfolio's asset allocation back to the target mix to maintain the desired risk level.
