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 ?
It claims that the new suite of Beta Indices is simpler than the earlier version, but is also expanded to include more currency pairs and five common investment styles such as G10 Trend, G10 Carry, Emerging Market Trend, EM Carry, G10 Purchasing Power Parity.
investment styles posted negative returns in July as rising volatility in the U.
But we offer a large selection of specialty funds and a much broader selection of investment styles and managers than either TIAA-CREF or Vanguard," she said.
Clashing investment styles are typical in marriages, particularly if the husband is an aggressive investor in stocks and mutual funds, while the wife prefers the more conservative certificates of deposit or money markets accounts.
One of them on the list, Lockwood Financial Services, for example, screens thousands of managers to find 50 institutional money managers representing 90 different investment styles.
We're pleased to introduce to the retail market these time-tested investment styles that have been offered to Norwest's 401 (k) clients since 1989," said Jay Kiedrowski, president of Norwest Investment Management, which advises Norwest Advantage Funds.
You're choosing equity managers with various investment styles, but they might, for example, have the same equity in their individual portfolios.
The Index selection methodology identifies six companies within each of 50 size and style groups, reflecting a broad spectrum of market capitalizations and investment styles, including value, relative value, blend, growth at a reasonable price (GARP) and growth by decile, that have the highest ratio of patent value to book value.
You may recall that the 31-year-old money manager with Paradigm Asset Management, an institutional investment firm in New York City, evaluates the investment styles of top portfolio managers, gleans their moves from Securities and Exchange Commission filings, analyzes their picks and makes his move.
The use of investment styles has recently become very popular among institutional investors but until now has not been easily accessible for individual investors or Investment Advisors.
Other than with a new manager, expect to see a five-year to ten-year track record - the length of time generally regarded as sufficient to encompass both bull and bear markets and even out the ups and downs of various investment styles.
It is accepted that certain investment styles will alternately bask in market favor and fall from grace because of underlying economic and market cycles.

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