Investment strategy refers to a plan of action or approach for selecting and managing investments with the goal of achieving a desired outcome, such as long-term financial growth or generating passive income.

An investment strategy typically involves setting investment objectives, assessing risk tolerance, selecting specific types of investments, and making decisions about how to allocate investment resources.

Different investment strategies may focus on specific asset classes, such as stocks or real estate, and may involve different levels of risk and potential returns. Some common investment strategies include growth investing, value investing, income investing, and socially responsible investing.

Effective investment strategy requires a thorough understanding of an individual’s or organization’s financial goals, risk tolerance, and investment horizon, as well as knowledge of financial markets and investment instruments.

By developing and implementing an effective investment strategy, individuals or organizations can make informed decisions about how to allocate their resources and achieve their long-term financial objectives.