Strategies for investing
In the previous chapter we looked at ways of measuring your personal appetite for risk and how to use that information to decide how to spread your investments across different asset classes – a process known as portfolio construction.
But knowing which asset classes to invest in only gets you halfway there. It’s not just a question of where to invest, but also how you go about it. And this comes down to knowing what investment style is right for you.
As a DIY investor, you have to choose how to approach investing in the asset classes you have decided to target – whether through directly held equities, bonds, gilts and other assets, or through funds. Once you have decided whether you are going to invest ...