Application of multi-criteria decision analysis for investment strategies in the Indian equity market

[enter Abstract Body]In the Indian equity market, the Systematic Investment Plan (SIP) is the most popularstrategy due to its convenience for disciplined investing regardless of market conditions. This study analyzes the excess returns of an extensive dataset of listed Indiancompanies from 2010 to 2019, along with a value-based version of the Multi-CriteriaDecision Analysis (MCDA), to identify top performing stocks, based on their sectorsand market capitalization. The findings of the study provide empirical evidence ofValue Averaging (VA) as a viable alternative strategy over SIP (also known as DollarCost Averaging or Rupee Cost Averaging) as 352 out of 359 companies yielded higherreturns under VA. The superiority of the VA strategy over the SIP was particularlymarked in the consumer goods, financial services and industrial manufacturing sectors, with a clear dominance of small cap companies. The results also show that riskfactors for VA strategy play an important role and should be taken into account, ratherthan base investment decisions on excess returns alone. The efficiency scores of individual stocks provide important insights for mutual funds, financial brokers and individual investors in India