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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
This broad range of US indexes allows investors to track current and historical market performance by specific size, investment style and other market characteristics.
Wharton Equity Partners said that the Florida portfolio is emblematic of its investment style as the firm was presented with the transaction from a REIT when another buyer dropped out of contract and moved quickly to acquire the assets in conjunction with a New York City hedge fund and property management firm.
"We seek to apply our approach consistently as - while an unemotional, valuationdriven philosophy will not always be in favour - over longer time periods this investment style has generated exceptional returns.
Among all domestic equity funds tracked by S&P Dow Jones Indices, only 53% maintained a consistent investment style over five years, and less than 35% did so over 10 years.
Is the charity exposed to a single investment style of just one manager or firm?
Sustainable investing has some way to go before it becomes a mainstream investment style, despite the fact that the negative future impact of the current economic approach on investments will be significant if the status quo remains unchanged.
Each mutual fund should represent either an asset class or an investment style within an asset class.
By choosing an investment style that is in sync with your financial situation and then choosing investments according to that style, you will increase your chances of reaching all your financial goals.
The 'how' encompasses a fund house's philosophy, its organisation structure, quality of people, processes, governance standards, investment style, strategy and client servicing, among others.
Opera-loving Hughes has an estimated PS375m fortune and got his nickname from his aggressive investment style.
Additionally, we discuss the investment style options of active, passive or socially responsible investing (see sidebar on page 52).

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