Understanding investment style matrix of your mutual fund scheme

This matrix shows the investment style that the fund manager is following to manage the fund’s portfolio.

For Equity funds, the horizontal axis shows the Valuation and the vertical axis shows the Market capitalisation of the fund. Valuation is divided into Growth, Value and Blend. Growth stocks are those that are expected to grow at a pace that outpaces the average market growth rate.

However these stocks are not cheap and are available at a price higher that their intrinsic values. Value stocks are those that are available at a price lower than their intrinsic values but have the potential to unlock values in the long run. Blended style of investing is a intermingling of growth and value style of investing. Market capitalisation on the vertical axis is divided into large, medium and small.

For ICICI Prudential Value Discovery, style box as on Mar, 2017 is:




For debt funds, the horizontal axis shows the credit quality and the vertical axis shows the Interest rate sensitivity. Both of them are categorised into high, medium and low. Credit quality of the fund is decided by the rating agencies. Interest rate sensitivity is a function of the average maturity and the duration of the fund. The higher the average maturity and duration, the higher will be the interest rate sensitivity.

For SBI Dynamic Bond Fund, style box as on Mar, 2017 is: