A person with a lot of knowledge
that makes the decisions for a mutual fund
. They usually have a special degree
that involves doing analysis
and other securities. They can also be known as the fund advisor
Mutual fund managers can have different styles or philosophies for their stockpicking. The two styles are growth and value. Growth means buying stocks of companies that have good business and show profit growth. Normally stocks are considered "growth" stocks if the profit growth for the company is ahead of the curve. This approach to stocks is considered riskier because such stocks are more expensive and in the case of a market crash, more expected to fall harder. Value investing will involve looking for stocks of companies that are cheaper compared to their peers. The reasons could vary. Sometimes, the company hit a bad stretch and people decided to get out of the stock, driving the price down. Other times, it might be that investors aren't familiar with the stock and so with little demand for the stock, it is cheaper.