Investment Strategy

• Objectives: Funds in Cyprus have diverse investment objectives which may include capital appreciation, income generation, or a balanced approach. The specific objectives depend on the type of fund and the target investors.
• Strategy: The investment strategy outlines how the fund aims to achieve its objectives. Common strategies include:
  • Growth: Focusing on stocks expected to grow at an above-average rate compared to other companies.
  • Value: Investing in undervalued companies with potential for price increases.
  • Income: Prioritizing investments that provide a steady income, such as dividends from stocks or interest from bonds.
  • Balanced: Combining equities and fixed-income securities to provide both growth and income while managing risk.
• Style: The fund’s style reflects its approach to selecting investments. Styles may include:
  • Active Management: Fund managers actively make investment decisions to outperform market benchmarks.
  • Passive Management: Funds replicate a market index, aiming to match its performance rather than outperforming it.

Types of Investment Strategies

1. Growth Investing:
   • Objective: Capital appreciation by investing in companies expected to grow at an above-average rate.
   • Focus: High growth sectors like technology, healthcare, and consumer discretionary.
2. Value Investing:
   • Objective: Identifying undervalued stocks that have the potential for price appreciation.
   • Focus: Companies with strong fundamentals that are temporarily out of favor in the market.
3. Income Investing:
   • Objective: Generating steady income through dividends or interest payments.
   • Focus: Dividend-paying stocks, bonds, and other income-generating securities.
4. Balanced Investing:
   • Objective: Combining growth and income strategies to achieve a balanced risk-return profile.
   • Focus: A mix of equities and fixed-income securities.
5. Index Investing:
   • Objective: Matching the performance of a market index.
   • Focus: Passive management by replicating the holdings of an index like the S&P 500 or the FTSE 100.
6. Sector-Specific Investing:
   • Objective: Focusing investments within a specific sector to capitalize on sector trends.
   • Focus: Sectors such as technology, healthcare, energy, or financial services.
7. Alternative Investing:
   • Objective: Diversifying portfolios with non-traditional assets.
   • Focus: Real estate, commodities, hedge funds, and private equity.