Single strategy funds refer to a portfolio management strategy where the manager makes specific investments with the goal of outperforming an investment benchmark index. The effectiveness of a single strategy fund depends on the investment strategy and the skill of the manager and research staff in executing that strategy.
The benefits of investing in single strategy funds:
- Single strategy funds offer the potential to out-perform the market as a whole
- Benefit from the experience and expertise of specialist fund managers
- Provide investors with the option to follow a single investment strategy that may suit their needs
The risks of investing in single strategy funds:
- Single strategy funds are subject to normal market fluctuations and other risks inherent in investing in securities
- The value of investments and the income derived from them may fall as well as rise and investors may not get back the original amount they invest
- There is no certainty that the investment objective of a fund will actually be achieved and no warranty or representation is given to this effect
