Growth and Value Stockpicking.

Here we go again, the classic diversification problem:

An increasing number of fund managers are blending growth and value tactics to pick stocks, but this trend is not popular with some investors, who want to diversify by using two distinctive styles.

Morningstar has moved 41 equity mutual funds from the value category to classify them as blends in the past 14 months. Over the same period, 13 funds have moved from the growth category to blend, and four funds have moved from growth to value styles, the fund research firm said.

Value stocks typically trade at lower multiples than growth stocks and pay high dividends. Growth stocks are pricier and are bought for their earnings potential.

It's sorta an offshoot of Coase. If as and when the costs of diversifying by hte individual investor are high, but by the professional one low, then the diversification should be done professionally, within funds. However, when we're in our current situation, with the lowest ever such costs, it should be done by the individual investor.

The thing is though, the professionals don't like this, because that doesn't leave anyone to pay them for doing so.