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I am looking at some funds, and am confused by two things.

  1. What is the difference between a fund and a fund strategy? Am I correct in saying that a fund strategy is an underlying portfolio and the fund is the actual medium through which investors can invest in that underlying portfolio through some fees and what not?

  2. Can you compare performance data between the two? Will the performance in return of the two products be identical (net of fees)?

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A fund (ETF, closed end, mutual, bond, hedge, etc.) is merely a pool of money that is invested and professionally managed.

Strategy is the approach to investing. In broad terms, it can be geared toward value, growth or income. It can be active and/or passive, long or short term.

Growth investing can involve many sectors. To name a few, finance, technology, health, energy, etc. It can overlap with income investing if it's stocks that pay dividends whereas it may not if it's only bonds (income investing).

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To follow up on Bob's answer, a fund strategy is an investment strategy using funds instead of individual stocks.

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    Alternately it could refer to the investment strategy of a particular fund.
    – yoozer8
    Commented Dec 16, 2020 at 18:22
  • @yoozer8 would that be the fund's strategy?
    – RonJohn
    Commented Dec 16, 2020 at 18:28

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