When using a "top-down" approach, the fund manager looks first at broad market factors, and on the bases of those market factors, chooses certain sectors, or industries within the overall market. The manager then looks at individual companies within those sectors or industries.
An investment strategy that focuses on general market trends and selects specific stock sectors that can benefit from these broad trends. otal return: Accounts for all of the dividends and interest earned before deductions for fees and expenses, in addition to any changes in the value of the principal, including share price, assuming the funds' dividends and capital gains are reinvested. Often, this percentage is presented in a specified period of time (one, five, ten years and/or life of fund). Also, a method of calculating an investment's return that takes share price changes and dividends into account.
an investment strategy which looks at the greater economy as a whole to determine which sectors or markets should perform well, then investigates individual companies within those sectors or markets perceived as favorable; contrasted with Bottom-Up Approach
An approach to investing in which the investor first look's at general trends in the economy and then chooses specific industries and particular companies that will benefit from these broad trends.