Active investment strategy urged

Investors need to adjust their strategies to make profits in volatile and weak equity markets, according to some investment advisers. Buying shares and holding them long term is a strategy of the past, they say.

To make money now investors must trade more actively. They must be prepared to take smaller profits on the shares they buy and move on smartly to other carefully selected shares.

While brokers and advisers would say that because many make their money on the volume of client activity, there is some merit in the advice, but only for investors prepared to keep themselves well informed and to monitor price movements carefully.

Through so-called range trading, investors take profits when they see them and invest again. The approach is more short term and investors have to factor in higher dealing costs.