According to the March 2025 scorecard, funds that scored “High” on consistency were predominantly aligned with value or momentum styles.
For instance, funds like SBI Contra Fund, HSBC Value Fund, and Nippon India Value Fund stood out for their sustained outperformance, bolstered by strong value or momentum exposure.
“From 2018 to 2020, Quality style of investing did significantly better. But in recent years, value and momentum have gained prominence due to their relative outperformance,” the report observed.
Yet, the report also cautions investors against writing off quality altogether. With macroeconomic growth tapering and sentiment shifting, quality stocks might be poised for a comeback.
Style diversification gains ground
In response to the cyclicality of market styles, several asset management companies (AMCs) are now adopting style diversification. AMCs like Quant, ICICI Prudential, SBI, Aditya Birla Sun Life, and Kotak Mahindra follow more balanced strategies across their funds.
On the other hand, firms like Edelweiss, HDFC, Mirae, and Axis tend to stick to a singular dominant style.
One notable example is PPFAS, which has a strong preference for both quality and value across its schemes.
“Just as different types of bowlers perform well on different pitches, investment styles also do well in different market phases,” the report analogises.
Outliers and contradictions
Interestingly, some funds defied the style trend altogether. A few top-performing schemes from Quant, ICICI Prudential, and SBI managed high consistency scores without a strong tilt toward Value or Momentum. These results were likely driven by superior stock selection or asset allocation strategies rather than factor bias.
Conversely, some funds with strong momentum or value scores didn’t deliver consistent performance, showing that style alone doesn’t guarantee success.
What investors should note?
The CRISP framework—short for Consistency, Risk, and Investment Style of the Portfolio—is designed to help investors move beyond past returns and assess mutual funds holistically.
The report evaluates over 5,000 listed stocks and classifies funds into “High,” “Medium,” or “Low” across style dimensions and risk parameters.
For investors, the key takeaway is to diversify not just across sectors and market caps, but across investment styles. Especially in uncertain economic conditions, this can help hedge against underperformance rooted in style cyclicality.
ALSO READ | Canara Robeco Mutual Fund to rename three equity schemes from June 20
