What's Your Style?

Why does an investor choose a particular fund to invest in and not any of its peers? What makes a good fund good? The very basic answer to these questions would be: the fund's returns. However, a more in-depth and composite answer would be: the fund's portfolio. It is the portfolio that defines what kind of returns the fund will achieve. It is the portfolio that makes or breaks a fund. Doesn't it then make more sense to choose a fund after having studied its portfolio? But that's a lot of figures and statistics to go through, understand and comprehend. Not everyone can grasp things like P/E ratio, P/B ratio, market capitalization and other absolute measures. Such measures have to be drawn into a con

This article was originally published on April 07, 2008.