Generally, the feature of small to medium capitalization companies. Ideally suited for the investors, who are ready to wait for a few years before liquidation of their investments vii. E.g. investors in their prime earning years. Value i. Fund managers look for assets, that are undervalued or managers believe, that investors are not appreciating full potential for that company or industry ii. These companies have low price to the earnings ratio or book value or may have hidden assets on intellectual properties.
Strategy is to buy the asset cheap and sell when market value rises.
Sector i. Fund managers focus their investments on specific industries such as IT or internet or metals. They expect that these industries will either grow at the fastest rate or the price appreciation of stocks of these companies will be faster than normal. Generally invest in corporate debentures, bonds etc. The value of such funds is sensitive to the interest rates. Ideally suited for investors who want regular income, like retired people.