Investment style

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Investment Philosophy

Basic standards and beliefs guiding one's investing practices. Factors influencing one's investment philosophy include risk tolerance, investment goals, and personal beliefs about what guides markets. Investment philosophies may vary widely from each other. For example, when investing in securities, one investor may use technical analysis, which utilizes statistical information exclusively, while another may use fundamental analysis, which uses both quantitative and qualitative information. It is also called an investment strategy. See also: Naive diversification, Markowitz Portfolio Theory.

Investment style.

Investment style refers to the approach that investors, including professional money managers, take in selecting individual investments and assembling portfolios as they seek to achieve their investment goals.

For example, a mutual fund that is focused on small-cap stocks might seek long-term capital appreciation by choosing aggressive growth stocks. Another small-cap fund with the same objective might build a portfolio of underpriced value stocks.

Evaluating a fund's investment style -- which is typically described as aggressive, moderate, conservative, or contrarian -- is an important consideration in choosing among mutual funds and ETFs. You'll want to be sure that any fund you purchase is compatible with your individual risk tolerance.

References in periodicals archive ?
IARs are able to work with clients to select the portfolios that best meet their needs -- whether they prefer a dynamic or tactical investment style, or a portfolio consisting of mutual funds, ETFs or a combination.
CitiFX Beta Indices use a monthly ranking system to determine which currency pairs are traded for each investment style.
The best performing investment style over the first seven months of the year continues to be mid-cap growth as the S&P MidCap 400/Citigroup Growth Index has gained 9.
An insurer can design a proprietary fund to precisely fit into an investment style that is needed to fill a client's asset-allocation needs, said Reilly, who in his retirement makes presentations on behalf of the National Association for Variable Annuities.
But the stock market's problems have made an impression on Xers, with 22 percent dubbing their investment style as conservative, up from 11 percent last year.
a leading analytics provider, bringing Zephyr's web-based investment style analytics to the InvestorForce site and InvestorForce's manager data to Zephyr StyleADVISOR(R) subscribers.
Monitor managers for consistency of investment style and portfolio management personnel.
If each investment manager has his own investment style, why not his own unique voting process?
Previously, he worked for seven years with the global investment firm Goldman Sachs, where he served as vice president and a senior member of a team managing a large-cap core investment style for clients and partners of the firm.
The stable value investment style is a conservative fixed income investment strategy that seeks to provide high current income and protection from price volatility caused by movements in interest rates.
This will determine your investment style, which will almost certainly change over time.
Under the rule adopted by the Securities and Exchange Commission, instead of the usual lengthy prospectus, investors could get a shorter summary outlining a mutual fund's risks, performance and investment style.

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