Growth and value funds have both proved rewarding for investors, but each perform differently in different environments. Rather than switching styles, are investors better off being exposed to both?
During the late 1990s, the equity markets had some excellent returns, led by fantastic growth in growth stocks such as technology shares. From 2000-2002, there was three negative years for equity markets with many growth stocks underperforming and value stocks beginning to lead the way. Fund managers around the world have responded to increased investor sophistication by offering more complicated products that often include dedicated 'growth' or 'value' funds. head to head In general, a growth-style manager invests in companies that show higher earnings growth than average. At differen...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
