 |
|
||||
|---|---|---|---|---|---|
 |
|||||
| Investment Style | |||||
What's Your Investment Style?
| Articles by Category: |
|---|
| New Articles | Personal Finance |
| Home |
| Savings and Investment |
| Retirement | Income Tax and Estate Planning |
| Security |
| Miscellaneous |
| Back To Money Matters |
Identifying and adopting an investment style that's a good fit for you is the first step toward securing your financial future.
By selecting a style that fits your financial situation and then choosing investments according to that style, the chances of getting what you want out of your investment program increase.
Here are some basic distinctions in investment style:
Growth:
Investors using a growth style put their money into securities, typically stocks, that are growing in earnings. These stocks are growing, or are expected to grow, faster than the stock market average. The growth investor aims for big gains over the long term, but also faces risks as growth-oriented companies go through their ups and downs. In fact, short-term losses can be substantial and severe during down cycles.
Value:
In the value style, investors look for stocks that are comparatively low-priced, but the price doesn't accurately reflect the company's potential and current assets. Thus, value investors are betting that the company's stock will rise again to reflect its true value.
Income:
Investors using an income style choose securities that produce regular but modest earnings. Some examples include government-issued bonds or money market mutual funds. Income investments don't bring as much potential for gain as growth investments, but they also carry less risk for loss. Thus, income investors aim for fairly stable earnings over time.
Blended:
The blended style combines both growth and income investments, to strike a balance between the potential for gain and the risk of loss.
Your investment style may depend on your goals, resources and your tolerance for risk. Other factors to consider are your years to retirement, financial goals, and investment time frame.
Take the time to carefully review your circumstances. Whatever your style, there is a savings vehicle to help you reach your goals.
Visit the Investment Center to find out how the Credit Union's professional Financial Advisors registered through CUSO Financial Services, L.P. (CFS), our broker-dealer can help with all your investment needs.
