Sometimes you like a book to the point that you would like to read it again, Came across an interesting extract from one of my favorite book Trader Guns and money, ..The fund managers had their own papal fashions which is called as investment styles,
Reference : The fund manager has give up trying to beat the market.
Style : Active Management
Meaning : The Fund manager picks up stock that willdo better than the market
Reference : The triumph of hope over experience. You the investor are paying for the experiment.
Style : Momentum investing:
Meaning : The Fund manager chases what ever is going up
Reference : The lemming or crowd theory of investing; the investment equivalent of a finish proverb: ‘shit must be good, millions of files can’t be wrong’.
Style: Value investing
Meaning: The fund manager invests in under valued gems that he has uncovered through research.
Reference : Pure luck or you hope that fund manager has inside information.
Style : Yield enhancement
Meaning: The fund manager invests to generate above market income
Reference : You are talking on a whole lot of risk. You will be lucky to get your money back intact.
Style: Portfolio insurance
Meaning: The fund manager guarantee that your investments at least 90% of it is safe
Reference: Hang on wasn’t the return of Principal the least that you are entitled to?
Style: Structured investment
Meaning: The fund manager will specifically design to fit your exact risk and return parameters using sophisticated investment tools and financial products.
Reference: A pure con job to charge you more fees
Style: Alternative investment
Reference : You are at an investment pioneer good luck !