| dc.description.abstract | The purpose of this study was to assess the effect of investment strategies on the financial
performance of collective investment schemes in Kenya. The research questions therefore were;
what are the preferred investment strategies by collective investment schemes and what is the
effect of investment strategies on the financial performance of collective investment schemes in
Kenya?
The research design was descriptive survey study in nature since it focused on all collective
investment schemes in Kenya. The population of the study was all the collective investment
schemes in Kenya. This implied that the total population of this study is 16 investment schemes
firms. The study used both primary and secondary data from the financial statements of the
investments firms. The selected period was 5 years. The researcher used frequencies, averages
and percentages in this study. The researcher used Statistical Package for Social Sciences (SPSS)
to generate the descriptive statistics and also to generate inferential results. Regression analysis
was used to demonstrate the relationship between the investment strategies and the profitability
of the collective investment schemes.
The findings reveal that collective investment schemes in Kenya had adopted two types of
strategy which are passive and active. However the study findings revealed that these strategies
were further categorized into five categories which include aggressive, value, moderate risk,
conservative and high risk aversion strategies. The findings also revealed that there was a
positive and significant relationship between investment strategy and profitability and return on
assets.
The study recommended that the collective investment schemes to pursue passive strategy
because it yields superior profitability than active strategy, that the firms should pursue passive
strategy as it yields superior returns on assets compared to active strategy, It was also
recommended that the governance structures need to be put in place so as to enhance returns of
the stock exchange and that the investment firms to adopt different forms of investments such as
investment property, real estate investments, mutual funds, government securities and equity. | en |
