Investment Strategy

Investment strategies are typically long-term, focused on building wealth, preserving capital, or achieving specific financial goals. It involves carefully planning portfolios around asset allocation, diversification, and risk tolerance, aligning investments with an investor’s time horizon and personal objectives. 

Passive Index Investing

Track market indices for long-term growth with low fees. Used by Most robo-advisors (e.g. Betterment, Wealthfront).

  • Assets: ETFs, index funds
  • Strategy Type: Long-term buy-and-hold
  • Benefits: Low cost, diversified, tax-efficient

Use a combination of fundamental, technical and algorithmic rules to rotate assets based on predictive models actively. Used By: Robo platforms, proprietary trading robots, and hybrid advisors.

  • Assets: Any market, financial (debt, equity, derivative), digital or real-world asset
  • Tools/Assets: Fundamental data, Price data, AI/ML models, technical indicators
  • Allocation: Strategic or Tactical allocation, with no limit on approaches one can take
  • Benefits: Seeks alpha over passive returns

Allocate portfolios based on personal goals (e.g., retirement, buying a house). Used by Private investors via digital advisors.

  • Tools/Assets: Automated portfolio construction, risk profiling
  • Strategy Type: Personalised asset allocation
  • Benefits: Clear planning, risk-aligned portfolios

Maintain target asset allocation by automatically rebalancing based on market movement. Used By: Both private and professional robo platforms.

  • Tools/Assets: Stocks, bonds, ETFs
  • Strategy Type: Dynamic allocation
  • Benefits: Keeps portfolio aligned with investor risk level over time

Tilt portfolios towards proven factors (e.g., value, momentum) rather than pure market cap indexing. Used By: Sophisticated robo platforms (e.g., Schwab Intelligent Portfolios).

  • Tools/Assets: Smart beta ETFs, factor-based funds
  • Strategy Type: Rules-based active/passive hybrid
  • Benefits: Potentially better risk-adjusted returns

Automatically sell losing investments to offset capital gains and reduce tax liability. Used By: High-end robo-advisors (e.g., Betterment Premium, Wealthfront).

  • Tools/Assets: ETFs, algorithmic tax engines
  • Strategy Type: Tax optimization
  • Benefits: Improves after-tax returns

Align portfolios with environmental, social, and governance values. Used By: Private investors seeking ethical investing.

  • Tools/Assets: ESG-screened ETFs, impact funds
  • Strategy Type: Value-aligned investing
  • Benefits: Ethical alignment, potential long-term resilience

Focus on specific, economically impactful long-term trends, such as AI, clean energy, and emerging markets.

  • Tools/Assets: Thematic ETFs, sector funds
  • Strategy Type: Targeted growth investing
  • Benefits: Potential to capitalize on megatrends