Investment Strategies
Investment strategies are approaches or plans implemented by investors to achieve their financial goals while managing risk and maximizing returns. This module delves into key investment strategies, including considerations of investment horizon, diversification, and the relationship between risk and return. Long-term vs. Short-term Investments: Long-term investments are those held for an extended period, typically several years or more. These investments aim to generate wealth over time through capital appreciation, dividends, and compound interest. Examples of long-term investments include investing in stocks, real estate, retirement accounts (e.g., 401(k), IRA), and education savings plans (e.g., 529 plans). Short-term investments, on the other hand, are held for shorter durations, usually less than a year. These investments prioritize liquidity and capital preservation over long-term growth. Examples of short-term investments include savings accounts, certificates of deposit
