Investment styles of Indian fund managers.....

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Investment styles of Indian fund managers.....

Post by jiten702 on Fri Mar 18 2011, 13:53

There are two broad investment styles followed by fund managers of India:

  • Growth Investing and
    Value Investing

In growth investing fund manager buys stocks which promise higher growth rate in future. If a stock is bought as a part of growth investing, its earnings should grow faster than overall market or sector earnings. Market normally pays premium price to these type of stocks.

Value investing tries to find out stocks which are trading at price which is lower than their intrinsic value. Stocks may trade at a lower price for multiple reasons like that sector is out of favor in the market or there is some negative news for the sector in the market etc. These are stocks which are available at low price but have potential to give attractive return in future.

jiten702
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