An intentional or unintentional departure from the original way a mutual fund was being managed, and a change to a new way of managing of the fund. At their inception, all funds have an objective or specific style of investing, usually determined by the management of that fund. Style drift indicates a change in the investment style, which could occur for many reasons, such as a change in the management team, or a decision made by the team because of a change of circumstance in the market.
Related information about style drift:
- Style Drift Definition | Investopedia
The divergence of a mutual fund from its stated investment style or objective. Style drift occurs as a result of intentional portfolio investing decisions by ...
- Style Drift - What Is Style Drift?
Style drift occurs when a mutual fund's holdings "drift" from one asset class (or ... continue to research and evaluate their mutual fund holdings to detect style drift.
- Style Drift - Financial Dictionary - The Free Dictionary
A situation in which a mutual fund's investment strategies or goals change from what they were originally. Style drift can be explicit or implicit. For example, style ...
- Style Drift | Zephyr Associates
Since the inception of returns-based style analysis and the ensuing development of sophisticated software that brought returns-based style analysis to the ...
- Style drift
Style drift is an (gradually increasing) inconsistency between the stated strategy that a portfolio or fund should follow (e.g., as specified by its mandate) and the ...
- A Matter of Style: The Causes and Consequences of Style Drift in ...
based measures allow a decomposition of style drift into components that result from active ... We find that a significant amount of style drift results from active ...
- Mutual Fund Style Drift
One of the more subtle reasons why index funds are better than actively managed mutual funds is that active funds can suffer from what's known as style drift.
- Style Drift - Index Funds Advisors
Style drift refers to the tendency of active managers and actively managed mutual funds to deviate from their stated or expected investment style.