Style Analysis


DEFINITION of 'Style Analysis'

The process of determining what type of investment behavior an investor or money manager employs when making investment decisions. Virtually all investors subscribe to a form of investment philosophy, and a prudent analysis of a money manager's style needs to be performed before an investor can determine whether the manager will be good fit for his or her personal investment goals and preferences.

BREAKING DOWN 'Style Analysis'

There is virtually an unlimited number of investment styles; however, some of the most common types of investment styles are categorized as growth investing, value investing, large cap investing, small cap investing and active trading.

Some money managers change their investment styles over time, opting to go with one approach while it is working well and then switching to another when the old approach seems to be losing its luster.

  1. Small Cap

    Refers to stocks with a relatively small market capitalization. ...
  2. Large Cap - Big Cap

    A term used by the investment community to refer to companies ...
  3. Style

    The investment approach or objective that a fund manager uses ...
  4. Growth Investing

    A strategy whereby an investor seeks out stocks with what they ...
  5. Style Drift

    The divergence of a mutual fund from its stated investment style ...
  6. Style Box

    Created by Morningstar, a style box is designed to visually represent ...
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