The final objective of all investment strategies is to beat the market and make lots of money. This strategy is fine when the market conditions are normal, but you will be swept under the carpet when the market turns volatile. Such conditions began during the last quarter of 2008, and the unpredictable volatility continues till this day. The best of the analysts failed in their strategies. Almost every international share market felt the pain.

A thorough overhauling of the strategies, a serious re-examination, is being done by every class of investor, financial institutions and brokers. The sweet recollection of the past, the Bull Run during which investors had a heyday, has made the issues worst for the investor. One is struggling to bail out from a bad condition. Every type of strategy, the existing one or the one which is revised, requires constant work and vigilance.

Simple investment strategies can be long term or short term depending on the goals of the investor. Some of the simple long-term strategies are:

• Passive investing 
• Fundamental Analysis 
• Technical Analysis 
• Market timing 
• Check asset allocation 

As for passive investing, it's almost a set-it-and-forget-it strategy. This is ideal for those with a long-term perspective of investment. There is no simple investment strategy that can be emulated by everyone. The strategy one chooses should be in tandem with the investment objectives, risk tolerance and financial limit. One of the popular strategies is:

Buy and hold: 

Buy high quality shares and hold them for the long term. This strategy yields substantial results. If you turn the pages of the share market history, you find that the shares have moved upward, resulting in capital appreciation, notwithstanding the market crash (1929), market break (1987) and market corrections (1989), when the prices of shares fell substantially. Subsequent to these declines, the market recovered and gained new heights. Forget the highs and lows, the investors with long-term perspectives have always gained.

One need to view from all angles while making selection of shares for buy and hold strategy. Scrutinize closely whether the company deserves your long-term trust, taking into consideration the changing technological scenario. Whether the management is innovative enough to meet the challenges and retain its position in the market. What are the plans of the company for the long term growth? You will get all such information in the quarterly/annual reports published by the company. It does not take much time for a blue-chip share to lose its luster, income shares to lose the income etc. Even while pursuing a particular strategy, you can be conservative or aggressive. Strategy is important, but the man behind the strategy who implements it, is more important.

One undeniable advantage of the buy-and-hold strategy is the compounding effect of the dividend reinvestment plan. Instead of drawing the amount of dividend, you direct the company to buy additional shares. This is the sure method to build your capital base. But you need to consider implication and burden of paying taxes on your dividend income.

Following any simple strategy is not the end of the road of investment. Rather, it is the beginning. With every trade, you learn new lessons. Buy-and-hold does not mean that you totally neglect the health of the shares. You have to yet keep a close watch; but your objective is long-term, but it should never take you to long-term loss.

Whatever be the simple investment strategy adopted by you, it demands all the study and research that goes with the share trade. The word relaxation does not befit the share market investments. But discipline and patience do!

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