Question

Please explain what is investment strategies and what is funding strategies.

I just want a breakdown of what these two concepts are

Answer 1

The Investment strategies are :

• Value investing: buy stocks which are cheaper.
• Growth investing: investing in growth stocks,as the growth stocks perform best in the mature stage of a cycle, when the business is at the best stage.
• Technical analysis . This investment strategy is based on graphs and models. Based on the past prices, investors can predict the future prices.
• Fundamental analysis: This analysis is based on picking stocks based on the financial statements of the company.

Some investment strategies seek rapid growth, some prefer value investing. Some prefer low cost, diversified portfolios.

Funding strategies:

• Taking a small business loan
• Crowd funding : Get the support of a wide base of investor without selling the equity stake in the company.
• Peer to peer lending: Small amount of money can be raised through this form of financing with high rates of interest , when the borrower is repaying capacity is considered to be risky.

Funding strategies mean that business has all the necessary funds, people and resources to achieve it's goals.

• Angel investors : they are high net worth individual who provide financial backing to entrepreneurs.
• Asking for funds from friends and family.