Mid-caps are somewhere in between. Mutual funds are often categorized by the market capitalization of the stocks that they hold in their portfolios. Some fund managers use a value approach to stocks, searching for stocks that are undervalued when compared to other, similar companies. Often, the share prices of these stocks have been beaten down by the market as investors have become pessimistic about the potential of these companies. Another approach to picking is to look primarily at growth , trying to find stocks that are growing faster than their competitors, or the market as a whole.
Some managers buy both kinds of stocks, building a portfolio of both growth and value stocks.
This is known as the blend approach. By using this site, you agree to our Terms of Service . Your privacy is important to us. For information, please read our Privacy Policy . All rights reserved.