It is generally considered a lower risk compared to the growth of investments. Unlike growth investing, which is best suited for investors who focus on capital gains, the value investing approach can be chosen by investors focusing on either capital gains or income, However, the income investor is more likely to choose a different value strategy compared to someone looking for capital gains.

How does it work?

The value of investors to basically buy a stock when its price seems significantly low compared to previous levels is certainly the reason that the company is going through a reorganization or undergoing a management change that sets a downturn in its share price.

In addition to paying attention to stocks that are currently wrong, value investors also focus on companies that consistently pay dividends while fundamentally profitable and pay segment profits back to investors without fail. Having said that, dividends also invariably help value investors make the most of stable returns along with the expectation of the stock escalating in price.

There are essentially two types of investments involved in this process – top down and bottom up. The top-down strategy to investing starts with basically examining the economy as well as market conditions to complete which sector is likely to be favored. After that, stocks can be collected from these sectors. On the other hand, the bottom-up approach does not take into account General market conditions. The focus is on stock selection based on full valuation analysis, company balance sheet, etc.

Apollo Investment Management is an investment firm serving clients in the United Kingdom, providing transparent financial advice with integrity and a deep understanding of market realities.

Denial of responsibility:

We are a fully authorised and FCA regulated company proud to put our customers first and operate with transparency and integrity. We tailor investment portfolios to suit our clients ‘ individual financial goals to help them make wise and safe investments with stable returns.

Original press release.