Investing Style

AAA

DEFINITION of 'Investing Style'

In the context of stock mutual fund investing, refers to using one of three possible approaches -- investing in value stocks, growth stocks, or a blend of value and growth stocks - to create a fund portfolio.


INVESTOPEDIA EXPLAINS 'Investing Style'

Value stocks are perceived to be less risky than growth stocks, which makes the blend investing style a compromise of the two. Investment style, along with company size, is the basic determinant of a fund portfolio's asset allocation and risk-return parameters.

Fund investors should look for a high degree of consistency in a fund's investment style. Frequent changes could be an indication of the fund's investment manager chasing performance, which surely involves increasing risk.

RELATED TERMS
  1. Warren Buffett

    Known as "the Oracle of Omaha", Buffett is Chairman of Berkshire ...
  2. Value Stock

    A stock that tends to trade at a lower price relative to it's ...
  3. Blend Fund

    A category of equity mutual funds with portfolios that are made ...
  4. Growth Stock

    Shares in a company whose earnings are expected to grow at an ...
  5. Portfolio Management

    The art and science of making decisions about investment mix ...
  6. Risk Tolerance

    The degree of variability in investment returns that an individual ...
Related Articles
  1. Understanding The Mutual Fund Style ...
    Mutual Funds & ETFs

    Understanding The Mutual Fund Style ...

  2. Too Many Mutual Funds?
    Retirement

    Too Many Mutual Funds?

  3. Style Matters In Financial Modeling
    Professionals

    Style Matters In Financial Modeling

  4. Unpredictable Event Or Bad Investment?
    Bonds & Fixed Income

    Unpredictable Event Or Bad Investment?

comments powered by Disqus
Hot Definitions
  1. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  2. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  3. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  4. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  5. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  6. Budget Deficit

    A status of financial health in which expenditures exceed revenue. The term "budget deficit" is most commonly used to refer ...
Trading Center