What is Investment Strategy

Investment strategy can be defined as a set of rules that can help your achieve various financial goals. One key focus area of such a strategy is to help you determine the choice of investments that can help you achieve various short, medium and long-term financial goals. Beyond this lies other considerations depending of what the investor is seeking.

Some common goals that investors aspire to achieve include long-term wealth creation, capital preservation, buying a house, saving for an international holiday, etc. As financial goals can be significantly varied, it is only natural that investments strategies designed to achieve these goals is equally varied. Let’s check out some of popular investment strategies in India for 2025.

Some of the different types of investment strategies in India for 2025 include:

There are multiple factors that have to be considered when selecting an investment strategy that is ideally suited to the needs of an investor. Below are some of the key factors to consider when making this selection:

As part of the overall investment process, you need to consider the taxation of gains that may be applicable to your investments at the time of redemption. Some investment options such as Public Provident Fund and Unit Linked Insurance Plans offer tax-free returns at maturity under current tax rules. Other investments such as mutual funds offer returns that are subject to capital gains taxation rules.

Then are also investments that offer tax deduction benefits such as pension plans, Senior Citizens Savings Scheme, National Pension System , etc. As part of your overall investment strategy you need to focus on tax implications at the time of choosing investments in order to ensure that your returns are tax-optimised. Minimising the tax out go increases your net returns which can help you reach your financial goals faster.

While it might seem that implementing and following a single investment strategy is easier, it is not actually the case. This is because, no single strategy is equipped to deal with all market scenarios and other factors that are liable to change, such as, your goals and the regulatory environment. In such a situation, you should consider retaining some flexibility by periodically checking the performance of your current strategy and making adjustments such as portfolio rebalancing as per necessity.