Another reason investors are attracted to
mutual funds is that each fund has a professional manager who
sets its investment buying style and directs the key buy and sell
decisions.
A buying style defines the particular investments
or types of investments a fund makes from the pool that may be
appropriate for meeting its objective. For example, in seeking
long-term capital appreciation, some equity fund managers stress
value
investments, which means they buy stocks whose prices are lower
than might be expected. Others stress
growth
investments, often younger, dynamic companies the manager believes
will become major players in their industry or in the economy
as a whole.
Some experts believe that a fund's manager
has a major role in determining the results a fund achieves. They
advise that you confirm that a successful manager is still with
the fund before you invest and that you consider selling your
shares if that manager leaves.
