Abstract:
Abstract
The investors must trade to make a return and the choice of where to invest and how many times to trade
lies with the investor. This study sought to determine whether the investment styles adopted by the
investors on the Nairobi Securities Exchange have an effect on their portfolio performance. The
relationship was tested using multiple regression analysis on a sample of 385 individual retail investors.
The overall model was statistically significant indicating that investment style influences portfolio
performance. Passive investment style and Growth oriented investment style have a significant
relationship with portfolio performance with growth having a negative effect while passive style has a
positive effect. The implication here is that investors who actively trade should cautiously evaluate the
implication on their portfolio to avoid the negative effects.
