They tend to provide a steady stream of dividend payments. Value investors hope others will eventually recognize the security's true worth, causing the price to rise. Since value stocks are already priced low, they generally aren't as vulnerable to market declines as growth stocks. Just like the popularity of clothing styles waxes and wanes over time, investing styles go in and out of favor. Growth and value stocks tend to alternate market position.
Many funds use a blended style, which is simply a mix of both growth and value stocks.
This helps diversify the fund and enhance the likelihood the investments will earn a smoother, more consistent return over time. Several of the Annuity Board's Select funds use this multi-style approach, although some tend to lean toward one style. For example, the Growth Equity Fund favors the growth style, while the Equity Income Fund focuses on the value style. Growth and value stocks tend to alternate market positions. Size also makes a difference Like clothing, stocks come in small, medium and large sizes.