Analyzing Style Biases and Performance of Funds

12 Pages Posted: 15 Apr 2007

Date Written: April 13, 2007

Abstract

Fund managers adopt a variety of investment styles to offer wide ranging mutual fund plans which give rise to different performance levels. Globally, the size of assets managed, the number and variety of mutual funds has seen exponential growth in the last five years and the mutual industry has become very competitive. The task of today's fund manager has become complex and hence it is no more bundling a few stocks and trying to beat the market. To succeed in the highly competitive market place, a fund manager needs to make a conscious choice with regard to investment style that is consistent with fund objectives.

In view of this, the article sets out to illustrate a methodology to identify, develop style measures and analyze the broad investment styles of contemporary fund managers. Based upon the past empirical evidence, the article discusses implications of the nine investment styles upon fund performance leading to generalization of risk-return profile of funds associated with the investment styles.

Keywords: Investment style, Growth, Value, Large-cap, Mid-cap, Small-cap, Risk, Return, Morningstar, Fund Manager, Mutual Funds, Portfolio

Suggested Citation

Rao, Dabbeeru Neelakanteswar, Analyzing Style Biases and Performance of Funds (April 13, 2007). Available at SSRN: https://ssrn.com/abstract=980268 or http://dx.doi.org/10.2139/ssrn.980268

Dabbeeru Neelakanteswar Rao (Contact Author)

Lingaya's University ( email )

Jasana Road
Nachauli
Old Faridabad, Haryana 121002
India
+919971510666 (Phone)

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
300
Abstract Views
1,265
rank
108,751
PlumX Metrics