When investment decisions of the fund are at the carefulness of a fund manager(s) and they decides which company, instrument or asset class the fund should invest in based on experience, research, analysis, market news etc. such a fund is called as an actively managed fund.

The fund buys and sells instruments actively based on changed perceptions of market from time to time. Based on the classifications of scrip with different characteristics, ‘active’ investment managers builds different portfolio.

Two basic investment styles common among the mutual funds are, Growth Investing and Value Investing style and they are in detail as fallows:

1. Growth Investing Style: The primary objective of equity investment is to gain capital appreciation. A growth manager looks for companies that are expected to fetch above average earnings growth, where the manager feels that the earning predictions and therefore the price of the scrip in future will be even higher.

2. Value investment Style: A Value Manager looks to invest in companies which is currently undervalued in the market based on their belief and sentiments, but whose value they estimate will be documented in the market valuations in dew course.


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