The Business Cycle And The Portfolio Composition Of Mutual Funds?

Abstract

This paper summarizes the arguments and counterarguments within the scientific discussion on the issue of mutual funds’ composition across the business cycle. The main purpose of the research is to determine whether mutual funds alter their investments across the business cycle. Systematization of the literary sources and approaches for solving the problem of the relationship between the business cycle and the composition of mutual funds indicates that five-star rated mutual funds may have an investment strategy that is different from lower-rated funds.