Style (redirected from in grand style)

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.

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Style

What Does Style Mean?

The investment approach or objective that a fund manager uses to make choices in the selection of securities for the fund's portfolio. Although there are a variety of styles, there are nine basic investing styles for both equity and fixed-income funds. For stock funds, company size and value/growth characteristics determine the style. For bonds, style is defined by maturities and credit quality.

Investopedia explains Style

The specific size classifications for stocks are large, medium-size, and small companies, as determined by market capitalization. Value, growth, and a value-growth blend are the three basic categories for stocks. Bond maturities are categorized as short-term, intermediateterm, and long-term. Credit quality is determined by a bond's status as a government or agency issue (high) and by credit ratings for corporates and municipals of AAA to AA (high), A to BBB (medium), and BB to C (low). Variations and combinations of these basic categories, as well as consideration of special industries, industry sectors, and geographic location, create investment styles for both stock and bond funds beyond the basic nine categories for each type of fund.

Related Terms:
• Growth Stock
• Index Fund
• Mutual Fund
• Value Stock