StockTrak Investment Strategy - Assignment Example

Table of Contents Table of Contents Stocktrak investment Strategy 2 Introduction 2 Goals and Objectives 2 Strategy 2 Conclusion 3 Stocktrak investment StrategyInstitutional AffiliationStudent’s NameCourse NameDateIntroductionInvestments provide business people with modes of making money. Investments are surrounded by risks, for example, an investor may take additional risks in a bid to leap profit from the potential increase in stock share’s values. Every investment is facilitated by the input of a fund and every fund usually is guided by an investment objective.

The goal is usually the set goal. A fund manager is required to specialize in a particular investment style.Goals and ObjectivesThere are various types of fund objectives. The company’s objective is capital appreciation, which is characterized by value growth, and the combination of both income and growth. The fund goals operate differently. While a growth fund focuses on specializing in an investment that promises to improve in value with time, income funds chose investments that promise to generate revenue (Fidelity).

The growth term is, however, more attractive.StrategyThe above mentioned is an investment strategy whose ground is based on the prediction that investments that are long-term. Are clinched through avoidance of incurring significant losses while working on accumulating reasonable gains (Weil). Therefore, the fund manager strives to stimulate upside returns and, on the other hand, reduce on downside exposures. Making losses is a significant lead to failure in investments. Therefore, this approach is tailor made to limit any possibilities of investment failures.

Investing 57% of the total funds in equity shares and the rest percentage in bonds would be a strategic move. After that, making additional investments of 18 equity shares through purchases and sales of shares for different companies would increase chances of meeting the objective. Purchasing shares is results to a long position while selling them is a short position. Observing the stock trend allows for making analyzed decisions in buying and selling the shares. In case there are higher chances of the lowering in prices, then a short position is more appropriate but if the prices increase, a long position is better.

ConclusionSince the company here is looking into investing in varying business firms, bonds and shares, a top-down approach would be the best. The approach mitigates the associated risks of making losses. In addition, the approach facilitates the analyzing of the best company in which to invest.Works CitedFidelity. "Capital Appreciation Fund." 30 April 2013. 2 June 2014 .