Fund managers incorporate different investment strategies when investing on behalf of their clients. The strategy and criteria used are essential aspects for an investor to understand, especially as they consider which fund manager to use.

1. Investment Strategies
Used by Fund Managers
Kevin Neal
Business

2. 2
Fund managers
incorporate
different investment
strategies when
investing on behalf
of their clients.
The strategy and
criteria used are
essential aspects
for an investor
to understand,
especially as they
consider which fund
manager to use.

3. 3
Some of the common investment strategies are:
Top-Down/Bottom-Up
An investment manager adopting a top-down
approach will take a big picture approach to
investment. For example, they might choose to invest
in stocks across the board if they anticipate growth in
the economy.
A bottom-up approach selects stocks based on
the strengths of the specific company and doesn’t
consider what’s happening in the company’s industry
or the entire economy.
Fundamental Analysis
Fundamental analysis involves assessing all the
factors that play a role in the performance of a
particular investment. If it’s a company’s stock,
for example, such an analysis would include
evaluating the business’s financial information and
its management, employees, competitors, suppliers
and customers.
Contrarian Investing
Fund managers who employ this strategy choose
an asset that’s out of favour with the market and bet
against it. The reasoning is that many of these assets
tend to be undervalued in some way.
Dividend Investing
Dividend investing involves purchasing stocks of
companies that have a good record of paying out
dividends, thereby providing a potential regular
income stream to investors.

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this topic, visit the
blog of Kevin Neal.