Investment Objectives & Styles

Fund Objectives

Typically, a fund's objective is to achieve a specific type of return, which is sometimes based on a specific timeframe.

Investment Styles

Fund managers adopt an investment style, or approach to choosing investments, because they believe it will help them achieve their investment objectives.

Diversified vs. Non-Diversified Funds

Diversified and non-diversified mutual funds adhere to different standards regarding their asset allocation. The funds' objectives may be different as well.

Mutual Fund Risks

Though mutual funds offer diversification, they are not immune to market movements and changes in the economy. As with any investment, a mutual fund's value can suffer losses if the economy, market or a market sector experiences a downturn.