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.

RELATED TERMS
  1. Style Drift

    The divergence of a mutual fund from its stated investment style ...
  2. Investment Style

    The overarching strategy or theory used by either a retail investor ...
  3. Manager Universe (Benchmark)

    A peer group of investment managers who have the same investment ...
  4. Diversified Common Stock Fund

    A mutual fund that invests its assets in a relatively large number ...
  5. Style

    The investment approach or objective that a fund manager uses ...
  6. Investing Style

    In the context of stock mutual fund investing, refers to using ...
Related Articles
  1. Investing

    Is Your Investing Style Hot, Or Not?

    Don't let your portfolio construction fall out of fashion.
  2. Investing

    Style Drift Can Hurt Mutual Fund Returns

    Small, gradual changes in a portfolio manager's stated strategies can be a big risk for investors.
  3. Investing

    Which Mutual Fund Style Index Is For You?

    The Russell Investments and MSCI Barra style classification systems can help you pick the right mutual fund - if you know how they work.
  4. Investing

    3 Alternative Ways To Assess Your Investment Manager

    Find out whether your funds are being managed according to your goals.
  5. Investing

    Build A Model Portfolio With Style Investing

    This sophisticated approach will add flair to your returns.
  6. Investing

    Understanding The Mutual Fund Style Box

    Evaluate your investments with this simple tool.
  7. Investing

    Mutual Fund Style Drift Not Always A Bad Thing

    Style drift has a bad reputation, but it can be a sign that your fund is thriving.
  8. Investing

    How's Your Mutual Fund Really Doing?

    Determine how fund managers are doing by sizing them up against their peers.
  9. Managing Wealth

    Invest Like A Pro

    By following the strategies of the pros, even a beginner can learn to invest like an expert.
  10. Financial Advisor

    Asset Manager Ethics: Investment Process and Actions

    Managers, in developing their investment process, need to determine some “general rules” that make it meaningful. We offer six.
RELATED FAQS
  1. What are some of the limitations of only looking at the rate of return for an investment?

    Learn why only reviewing the rate of return for an investment poses a risk to the investor and what additional factors should ... Read Answer >>
  2. The general investing public is under the opinion that today's new tech stock is ...

    The correct answer is C). Mary invests with a contrarian investment strategy, a style that does not follow public opinion ... Read Answer >>
  3. All of the following statements are true with respect to the various ways that equity ...

    The correct answer is: b) Global investing is the proper definition for investing in stocks from all over the world. International ... Read Answer >>
  4. What investments have been the poorest historical performers?

    Learn about low performance investments and how they are used by investors. Find out which investments lose funds and how ... Read Answer >>
  5. Where does a hedge fund get its money?

    Learn how a hedge fund is structured and how the managing partner of the fund goes about the process of finding and soliciting ... Read Answer >>
Hot Definitions
  1. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  2. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  3. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
  4. Job Market

    A market in which employers search for employees and employees search for jobs. The job market is not a physical place as ...
  5. Yuppie

    Yuppie is a slang term denoting the market segment of young urban professionals. A yuppie is often characterized by youth, ...
  6. SEC Form 13F

    A filing with the Securities and Exchange Commission (SEC), also known as the Information Required of Institutional Investment ...
Trading Center