If you delve deep into the art of investing, you'll realize that there's more than one way to do it.

Every investor out there has a unique style of their own. You can emulate them but eventually you'll develop a style of your own, which is unique !

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#investing

Before you get confused, let me introduce you to 3 of the most popular long-term investing styles.

Every other style/strategy has been, more or less derived or inspired from these styles.

If you're a beginner, you can choose among these according to your likes.

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#style

These 3 styles are :

1. Value Investing
2. Growth Investing
3. Dollar Cost Averaging

These are not the only ones and many may define these differently.

There are only small differences among these styles and they may even conflict with each other

Let's take a look !

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VALUE INVESTING

Value investing is basically buying something which has a "value" of Rs.1 for a "price" of less than Rs.1

Value investors are always looking for bargains. They value a stock and buy it when they get it for a discount.

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#valueinvesting

Eg: Let's say you wanted to buy an AC whose MRP is Rs.40,000. It's Diwali season and you're getting 25% off !

You would pounce on this opportunity because you know that you'll get such a bargain probably next year only.

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#diwali #discount

Value investors use the same logic for stocks. They value a company for say X and whenever the price goes below its value due to say a temporary pandemic, they buy it because they know that the company is more valuable and eventually it'll come back up.

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#pandemic

GROWTH INVESTING on the other hand is based on future growth expectations.

If you think that the company has potential to grow at a rapid/steady pace in the future and you buy it, irrespective of its value, it's growth investing.

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#growth #investing

Both these methods might need intense research on the company and high emotional control to execute.

You can skip all this and invest peacefully if you follow the DOLLAR COST AVERAGING method !

This is the most recommended strategy for a beginner investor.

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#SIP

With the DCA method, you fix a monthly amount and keep investing it into a mutual fund, ETF or through an investment advisor.

This gets rid of market timing, research hassle etc. and saves time, energy and peace of mind.

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#mutualfundssahihai

There are more strategies out there but they are for another day

Tell me which strategy do you prefer and why ?

Do not forget to share this with people you care about.

Thanks a lot for your time

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#signingoff