Author(s): Robert Lucas
A set of guidelines created to aid an individual investor in achieving their financial and investing objectives is referred to as an investment plan. This strategy directs an investor's choices in accordance with goals, risk tolerance, and anticipated capital requirements. They can range from cautious (following a low-risk approach with the goal of protecting money) to extremely aggressive (seeking rapid growth by focusing on capital appreciation). Investors can create their own portfolios using their techniques or work with a financial advisor to do so. Strategies must be frequently reassessed as conditions change since they are not static. Investment tactics come in a wide variety. There is no one investment strategy that fits all investors, thus there isn't a single strategy that works for everyone. This implies that as people age, they should review and realign their tactics in order to tailor their portfolios to their circumstances. Value investing, growth investment, and more cautious or riskier strategies are all available to investors.