The STRIDE Blog

Your Investment Strategy: Fund Managers, Indices and STRIDE

stride-choosing-an-investment-stragety-1-featured.jpgChoosing an investment strategy can be tough, because it’s difficult to select any one or two options from the diverse number of strategies around. So, what if you had a quick and easy way of finding out just which strategy best suited you? 

We’ve done just that. Cutting through the complexity of choosing an investment strategy from scratch, we’ve gone ahead and created a useful infographic for doing just this. Over some time, we analysed how STRIDE, fund managers and index funds weigh against each other in different aspects. With this information, we then created an easy-to-understand infographic that allows you to quickly understand the top investment strategies and which one is best fitted for you.

You can download our infographic below, but first we thought we would take some time to explore the differing methods of these three investment strategies for you.

The Methods of Investment Strategies

Fund Managers

Fund managers are perhaps the best known investment strategy. When investing with one, you will hand over your money to a selected fund manager/s and sit with them to discuss your investment. After deciding on a particular risk level, diversification and with them understanding your expected returns, they then begin to manage your investment for you by choosing which securities your money is put into.

You will meet up with them fairly regularly to be advised of your investment, and to voice any opinions you might have, but otherwise your involvement is not immediately necessary (meaning you do have limited control).

Index Funds

Index funds are certainly the most popular investment strategy at the moment, particularly amongst those who are nervous to hand over their money to someone else.

When investing in an index fund, you will first do some research into which index you like best, for a variety of reasons. For example, you might like its performance history, the stocks it tracks or its yield size. Once you have selected your index, you simply invest your money and allow it track the chosen index.

You will keep an eye on your investment, but there is no active involvement in the day to day maintaining of an index fund (as it really is a waiting game). When the index reaches a high or low point that you think is wise to sell, then you once again simply trade in your investment.

STRIDE

STRIDE is not so well known as the previous two strategies, yet it manages to outperform both.

When investing using STRIDE’s stock picking and portfolio management tool, the first step is subscription. You subscribe to STRIDE’s service by selecting in which area you are trading, and then their engine does all the hard research work. By receiving weekly updates on which stocks you should buy, hold or sell, STRIDE allows you to invest in a large number of stocks and countries, including hard-to-trade countries. Diversification on this scale makes a huge difference on returns.

It is entirely up to you with what to do with your investment, yet STRIDE consistently gives you accurate guidance into reaping the greatest reward according to your selection of risk, diversification and investment size.

While STRIDE consistently beats the market and fund managers in returns, index funds are the lowest risk and cheapest strategy. Interestingly enough, our findings place fund managers at the bottom of the pack, performing well below even index funds.

So learn which investment strategy is right for you by downloading our comparison infographic below.

Image credit (featured): Martin Fisch

 

The best investment strategy for you: An infographic comparison of STRIDE, fund managers and index funds.

Topics: 3D Value Investing

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3D Value Investing: Triangulating The Best Investment Targets

3D Value Investing uncovers the best businesses for investment, the fair value of those businesses and the best times to buy in and sell out. This approach to long-term investing results in higher returns with lower risk.

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