Due to the rapid changes encountered in the social, economical, and technological status in the society, the financial market is becoming more volatile causing a great impact on the capital investment made by the investor. In today’s market scenario, investors need to make a wise-decision on the type of financial investment the investor is intending to make. Fundamentally, there are two main types of investments that are available in the market and they are: a slow and steady income generating type of investment known as the defensive investment, and a high-profit generating with a high-risk oriented type of investment known as the growth investments.
Generally, the investors are advised to consider a diverse portfolio of investments to gain maximum profit with lower risks catered to various economic conditions prevailing in the market. The diverse portfolio of an investor can include a combination of investments ranging from a stable, income generating defensive investments (cash and fixed deposit) to a highly volatile and high profit generating growth investment plans.
While there are many pioneers who have contributed in the growth investment plan, the earnings cannot be guaranteed based on a single thumb of rule or by adopting any specific strategies. Some of the greatest investors who have contributed in the field of finance investments are Thomas Rowe Price, Jr, Philip Fisher, Peter Lynch, John Templeton and William J.O’ Neil. These investors have adapted various types of investment styles including the successful long-term growth investment style. However, none of these investors have completely adapted the growth investment style exclusively.
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