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What does it mean when a fund uses a top-down approach to investing?

April 26, 2017approach fund Investing mean top-down uses

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What does it mean when a fund uses a top-down approach to investing?

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A. A top-down approach to investing refers to an investment strategy used by portfolio managers that puts an emphasis first on the general trends of the economy, then chooses specific industries, or countries in the case of global or international funds, and companies that can benefit from these trends.