style box

Definition

A tool that is used to illustrate the style of a mutual fund (the way they approach their investments). The tool is used by Morningstar, and other agencies, and consists of a nine square box, looking like a tic tac toe grid. The two axes will be used to represent different strategies or factors, which may include capitalization size, methodology, maturity, or other factors. Each row or column will correspond to a different degree (such as small, medium, or large capitalization). Then, the appropriate box is shaded in which represents the levels of each factor for one particular fund.
The style box is used to help investors get a quick representative idea of each fund.
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style style drift