Understanding Defensive Investment Strategy

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A defensive investment strategy aims to protect a portfolio from losses during market downturns by prioritizing stability over high returns. This approach typically includes lower-risk assets like investment-grade bonds, dividend-paying stocks, and cash equivalents. While it may yield lower returns compared to more aggressive strategies, defensive investing is ideal for conservative investors or those nearing retirement, offering a safeguard against significant losses and allowing for modest growth during uncertain market conditions.

Source: YAHOO

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