How different are styles of different mutual funds?
Different mutual funds have very different investing styles. These styles are a function of the individuals managing the fund with the overall investment objectives and policies of the organization acting as a constraint. These are manifest in things like Portfolio turnover Buy and hold strategy versus frequent investment changes Kind of investments made small versus large companies, multi baggers (investments which yield high gains) versus percentage players (investing in shares which will give small gains in line with the market), high quality low yield bonds versus low quality high yield bonds Asset allocations Varying percentage of cash depending on aggressive views on markets The following examples serve to illustrate a few styles of equity fund managers Some fund managers are passive value seekers and some are value creators. The former type buys undervalued assets and patiently waits for the market to discover the value. The latter aggressively promote the undervalued stocks tha
