When thinking about investing inequities, there are a number of different ways in which a fund might be structured.

To focus its attention on a specific area of the equity Market.

This could be by Style.

size sector or theme or geography the investment style of a fund is one of the main decisions that a manager has to make in order to identify how they will attempt to generate excess returns for the fund.

The first way this could be done is through focusing on growth investing.

Growth investing is about investing in good companies with high growth prospects.

There is however a risk that future growth prospects might already be incorporated into the Securities current price or in other words. The growth is priced in already.

But even in the circumstances the growth investor hopes, there will be higher growth than others might have anticipated.

value investing involves investing in undervalued securities This is less focused on the prospects of the company itself.

But more on a comparison of their current share price to a calculated expected value.

Although value investing will typically involve investing an undervalued Securities. There is an assumption that these undervalued Securities will become fairly valued at some point in the future.

Rather than remaining undervalued over the long term to deliver excess returns to the fund.

Another style approach would be to invest in companies which are generating High dividend incomes relative to their current share price.

This could be thought of as a subset of value investing since lower share prices will lead to higher dividend yields, but might be an appropriate strategy for an investor seeking to generate an income stream.

to meet living expenses and alternative way of dissecting the investment landscape could be by size.

Companies with larger market capitalizations or large cap stocks tend to be less risky since they are more established companies with diverse income streams and established markets.

But they might offer more moderate consistent returns.

At the other end of the scale our small cap stocks.

Which offer the possibility of significant upside gains? But also with significantly more risk.

Investment managers can also focus on specific industrial sectors such as financial services companies or energy companies or focus on investment themes such as ESG investing or cloud computing and finally many investment funds are also focused on specific geographical areas, which could be narrow such as a single country or broader covering a geographical region.