INTERVIEW QUESTIONS INVESTMENT MUTUAL FUNDS DETAILS

Question: What are common approaches to investing in mutual funds by their portfolio managers?

Answer: Common approaches to investing in mutual funds by their portfolio managers are:-
Top-down approach – looks at the big economic picture, and then finds industries or countries that look like they are going to do well. Then invest in specific companies within the chosen industry or country.
Bottom-up approach – focuses on selecting specific companies that are doing well, no matter what the prospects are for their industry or the economy.
A combination of top-down and bottom-up approaches – A portfolio manager managing a global portfolio can decide which countries to favour based on a top-down analysis but build the portfolio of stocks within each country based on a bottom-up analysis.
Technical analysis – attempts to forecast the direction of investment prices by studying past market data.

Common approaches to investing in mutual funds by their portfolio managers are:-
Top-down approach – looks at the big economic picture, and then finds industries or countries that look like they are going to do well. Then invest in specific companies within the chosen industry or country.
Bottom-up approach – focuses on selecting specific companies that are doing well, no matter what the prospects are for their industry or the economy.
A combination of top-down and bottom-up approaches – A portfolio manager managing a global portfolio can decide which countries to favour based on a top-down analysis but build the portfolio of stocks within each country based on a bottom-up analysis.
Technical analysis – attempts to forecast the direction of investment prices by studying past market data. Source: CoolInterview.com

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