Investment Styles and Performance of Mutual Funds in India

Abstract

The study links investment styles with performance, nature of ownership, fund size and fund age. The study brings to light that investment style affects fund performance in the long-term. Further, the investment style is influenced by fund size as evidenced through hypothesis testing. The study developed a methodology to quantify investment style of equity funds; Classified investment styles; Identified major investment styles of select equity funds in the Indian context; Analysed performance of select equity funds in terms of return, risk, ownership, fund size and fund age; Formulated hypotheses and tested association (relationship) and regression (effect) to ascertain the relationship and effect of investment style and performance of equity mutual funds respectively over the chosen time frame.

Keywords: Investment styles, Mutual Funds, Equity