- bond), domestic equity (stock) and international equity (stock) securities and their respective mutual funds. A style box is a valuable tool for investors to use to determine the asset allocation and risk-return structures of their portfolios and/or how a security fits into their investing criteria. There are slightly different style boxes used for equity and fixed-income funds.
For stock funds (domestic and international), the horizontal axis of the style box is divided into three investment style categories: value, blend (a value/growth mix) and growth. The vertical axis is divided into three company-size (based on market-capitalization) indicators: large, medium and small.
For bonds and bond funds, the horizontal axis is divided into three maturity categories: short-term, intermediate-term, and long-term. The vertical axis is divided into three credit-quality categories: high, medium and low (BB-C).
Investors can use a style box to put together mutual fund portfolio and visually see the results as a total picture. For example, an investor looking for a relatively safe stock fund would seek out one categorized as a large-cap value fund. If that same investor is willing to accept more risk for the opportunity of a greater return, he/she might select a fund in the small-cap growth category. Putting dollar values on the fund selections in the same and/or differing category squares will readily reflect the risk-return parameters of the whole portfolio.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
Equity Style Box — A visual representation of the principle investment characteristics of stocks and stock mutual funds. The style box was created by Morningstar and is a valuable tool for investors to use to determine the risk return structures of their… … Investment dictionary
Fixed-Income Style Box — Created by Morningstar, a fixed income style box is designed to visually represent the investment characteristics of bonds and bond mutual funds. This is a valuable tool for investors to use to determine the risk return structures of their bonds/ … Investment dictionary
International Equity Style Box — A visual representation of the principal investment characteristics of foreign stocks and foreign stock funds. The international equity style box is a valuable tool for investors to use to determine the risk return structures of their… … Investment dictionary
Box Hill Institute of TAFE — Box Hill Institute is a secondary and tertiary education institute based in the eastern suburbs of Melbourne in Victoria, Australia, with additional campuses overseas. It has three campuses in Box Hill (Elgar, Whitehorse and Nelson), one in… … Wikipedia
Box (character) — Box, is a fictional character from the 1970s film Logan s Run (played by Roscoe Lee Browne). Donning a tribal style facial mask, large metal body suit, and a harpoon and ice gun, Box became an icon for its time.Box in the filmThe protagonist of… … Wikipedia
Box Tunnel — is a railway tunnel in western England, between Bath and Chippenham, dug through the Box Hill. It was built for the original route of the Great Western Railway under the direction of the GWR s engineer Isambard Kingdom Brunel.The tunnel is 1 mile … Wikipedia
Box Step — is a basic dance step named after the pattern it creates on the floor, which is that of a square or box. It can be incorporated into many types of dance, including disco, jazz, and most commonly, in American Style ballroom dances: Rumba, Waltz,… … Wikipedia
Box modeling — is a technique in 3D modeling where the model is created by modifying primitive shapes in a way to create a rough draft of the final model. This is in contrast with the edge modeling method, where the modeler edits individual vertices. While a… … Wikipedia
Box Motions — The box motion is an accessory to those power looms adapted for: the purpose of weaving cloths in which more than one colour or kind of weft is used. There are two classes of motions adopted, namely the circular box motion and the rising or drop… … Dictionary of the English textile terms
Style Council — The Style Council Gründung 1983 Auflösung 1990 Gründungsmitglieder Gitarre, Bass, Gesang Paul Weller Keyboard, Piano, Gesang Mick Talbot Schlagzeug Steve White Gesang Dee C. Lee … Deutsch Wikipedia