Definition: Systematic plan to allocate investable assets among investment choices such as bonds, certificates of deposit, commodities, real estate, stocks (shares) and other money & capital market instruments. It is a set of rules, behaviours or procedures, designed to guide an investor's selection of an investment portfolio to support investors profit objective, risk appetite & time horizon. 

Example: There are several strategies like 'Buy & Hold' (buying & holding for long-term for capital appreciation), 'Momentum Trading' (select investments based on their recent past performance), 'Value vs Growth' (value investing looks at current value to determine if the underlying instrument is overvalued or undervalued & make a call based on the present market valuation whereas growth investing looks at the growth  potential of the company to generate profits and invest basis those forecasts) etc. 

Business Insight: A prudent investment strategy takes into account the business environment, inflation and interest rates.