There are many different investment styles but the first two I am going to discuss are Growth and Value investment styles. First off, what is an investment style? Investment style refers to different style characteristics of equities, bonds or financial derivatives within a given investment philosophy (Investment Style, 2018). Everyone has their own investment style they prefer. The style an investor chooses to use typically depends on what the investor is wanting to accomplish, their risk tolerance, and their investment timeline.
You may or may not have heard about www.betterment.com. If you have, bear with me as I give a little background to the amateurs reading this. Betterment is a fairly new investment platform, kind of like Vanguard or Ameritrade. What makes it so unique is the methodologies they use to invest your portfolio. They use science and math and statistics and have developed very sophisticated algorithms for investing. They claim they can make an additional 2.66% return per year than someone doing it on their own (Betterment.com, 2018). According to Betterment.com that figure (2.66%) is after their management fee which is 0.25% for most accounts (Betterment.com, 2018).