Style (Investment)

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Definition: Style (Investment)

Style is the investment objective or approach which a fund manager would use for making choices in the selection of securities for the portfolio of fund. While there are a lot of styles, there are basic 9 investing styles for both kinds of funds equity and fixed-income. For the stock funds, size and value/growth of the company determine the style. For bonds, maturities and credit quality define style.



The size parameters specific for stocks are small-sized, medium sized and large sized companies that are determined by market capitalization. Value/growth blends or Value and growth individually are the 3 basic categories for stocks.


Bond maturities are categorized as long term, short term and intermediate term. Quality of credit quality is determined by the status of bond as a government or agency issue (high) while credit ratings for municipals and corporates of 'AAA' till 'AA' (high), 'A' till 'BBB' (medium) and 'BB' till 'C' (low).


Hence, this concludes the definition of Style (Investment) along with its overview.

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