Uncovering 5 Innovative Strategies for Investing
Written byYannie Woon
Updated on: January 10, 2023
Please note that the content of this article is based solely on the opinions of the author. It has not been reviewed, commissioned, or otherwise endorsed by any of our network partners.
Investing is an important part of financial planning and managing wealth. It requires knowledge, skill, and patience to make sound decisions.
In order to maximise returns while minimizing risk, investors should consider different strategies when selecting investments. Here are five innovative strategies for investing:
Table of Contents
A well-diversified portfolio can reduce risk by spreading out assets among different types of investments. This approach allows you to mitigate losses if one specific asset class performs poorly in the market.
2. Automated Investing
Automated investing or “robo-advisors” help you automate your portfolio by using algorithms that optimise allocation based on individual goals and risk tolerance levels.
They can also provide features such as automatic rebalancing and tax optimisation.
3. Factor Investing
This strategy focuses on specific factors such as size, value, momentum, quality, volatility, and liquidity when selecting investments.
It enables you to identify stocks with a higher return potential by targeting “the right” assets that exhibit certain characteristics.
4. Alternative Investments
Alternatives are asset types that don’t fall into the traditional categories of stocks, bonds or cash and can provide investors with unique exposure to different markets or strategies.
These include real estate investment trusts (REITs), commodities, private equity and venture capital funds.
5. Contrarian Investing
This approach relies on the idea that stocks that have underperformed in the past could outperform in the future.
In other words, by looking for value opportunities, you can identify stocks that are trading at a discounted price, offer good dividend yields or have been neglected by other investors.
By implementing these innovative strategies, investors can maximise returns while mitigating risk. Whether you’re new to investing or an experienced investor, it’s essential to stay informed and use a variety of investment strategies to reach your goals.
With this knowledge, you can make informed decisions and start building your financial future.
Updated February 3, 2023
A personal loan is like a car; it can take you to places you’ve never been before more often and much faster than the MRT. As someone who got her driver’s license near the age of 35, I can tell the difference. But back to personal loans. If these financial packages are like cars, your […]Read More
Updated January 18, 2023
I’ve noticed a common New Year resolution: giving up Starbucks. It’s like there’s this virtue in giving up more expensive things that bring you a bit of pleasure. Sure enough, you shouldn’t buy Louis Vuitton monthly if you’re barely paying your rent. But you shouldn’t postpone buying a zero-gravity massage chair if you have chronic […]Read More
Updated January 16, 2023
I’ve often asked myself why some people struggle and others succeed. Money plays a crucial role, sure. If you come from wealth, chances are you’ll attract more of it. But things get really interesting when you see some struggling people succeed while others don’t. That makes me think it’s not just environmental or socio-economic factors […]Read More