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INVESTMENT STRATEGIES (MFs)

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Income /Debt Fund: If a particular scheme has been made for the purpose to invest only in debt instruments like bonds & deposits, it is known as Income/Debt Fund. These are considered as conservative funds since the investor wants the regular income and cannot wait for more than short to medium term. 

Equity Fund: If a particular scheme has been made for the purpose to invest only in equity shares, it is known as Equity Fund. This fund is considered as an aggressive fund in nature and the investors should have the long – term horizon for investment. 

Balanced/Hybrid Funds: It is a mix of equity and debt fund and it can be further divided into Equity Oriented Fund and Debt Oriented Fund. These are the types of moderate funds which seek growth and stability but only taking the moderate risk. 

Bottom – up Investing: This strategy considers only the fundamental factors of a company before considering the economic prospects. In this strategy a bottom – up investor neglects the broad macroeconomics analysis and focuses on a specific stock based on its individual qualities.  

Top – down Investing: This is an investment strategy. In this strategy, the investor begins with analysis of domestic and global economy and considers the factors like GDP, Interest Rate, inflation and exchange rate. Subsequently, the investor identifies the most promising companies in the economy. In short, it is an investment strategy which first takes a view on the economy and then looks at the industry scenario to assess the potential performance of a company.

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