Wednesday, December 29, 2010

Morningstar Style Box

The Morningstar Style Box is an fund analysis tool that classifies funds based on their investment style and the size of the companies they invest in. On one axis there is the three size categories (referring to market capitalization size) being Small, Mid, and Large; and on another axis is the fund investment style, in three categories being Value, Blend, and Growth. So, looking at the box below, a small-cap value fund would be in the bottom left corner. It is useful to assess a fund's style, to see if it is actually doing what it says it is doing for one, but also in order to compare it to the right peer group.

Synonyms: Style box, Fund investment style, Morningstar

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