Last Updated on 2020-05-02 by Admin
(1) Top Down Approach
Asset Allocation Process
- Commonly used method by Fund Managers
- Determine sectors or industries, i.e. Global Industry Classification Standard (GICS)
- Communication Services
- Consumer Discretionary
- Consumer Staples
- Energy
- Financials
- Health Care
- Industrials
- Information Technology
- Materials
- Real Estate
- Utilities
- Determine assets for sectors (industries)
(2) Bottom Up Approach
Security Selection Process
- Commonly used method by Hedge Fund Managers
Efficient Markets
- Active Management
- Passive Management
