Style Box, Broken or Fixed?
Posted: 17 Jan 2015 Last revised: 27 Jun 2017
Date Written: January 15, 2015
Style box for the investor is a visual representation of investment characteristics for stocks, fixed income and mutual funds offered as a comparative tool to investors around the world for helping them determine asset allocations based on their risk preference. Should an idea nearing 30 years of history need revisiting? Is the style box a good visual representation? Why should we bother with a mere visual? Maybe that’s why no one asked this question, is there something wrong with the style box? Is it still a good representation? Is questioning this representation essential for our broad comprehension of risk? Can we afford to be complacent about visual representations which determine our investment choices?
Keywords: Style Box, Industry Standards, Investing Style
JEL Classification: E44
Suggested Citation: Suggested Citation