INF209K01XX1
Overall analysis
The 3-yr rolling excess return tracking error against benchmark has been normal overall. The fund was good when it was started after some time it came down and gave negative returns. So for a long time the fund was not doing well and not giving good returns.
Performance analysis
Rolling return in quartiles
The rolling return chart shows excess 3-year annualised returns in context of peer return quartiles. The blue line’s time above the third green median line indicates the fund’s better than median performance.
The 3 year rolling return of this fund chart shows that when the fund was started that time gave good return and in long duration fund gave negative return. Before June 2019 fund is not going out from + 1.88% to -2.61%.
Rolling Risk/return (snail-trail)
The rolling risk/return chart shows excess 3-year annualised returns relative to the index. The top left quadrant would indicate higher returns with lower volatility than index.
This fund has shown impressive 3-year excess returns, touching 12.82% per annum in 2016 and currently in 2023 this fund has given negative return.
Tracking error
The tracking error chart shows how the fund ‘tracks’ against the index. The higher the TE, the more active the fund’s return has been, with the 3-6% range considered to be barely active, >6% range considered to be reasonably active and anything higher attributed to concentrated/focused funds. Funds with TE of less than 3% can be considered to be closet indexers.
Tracking error of the fund was good from the starting date. Tracking error is maintained between 3% to 5% and currently is close to the Index.
Information ratio
The information ratio is a measure of ‘risk-adjusted return’ as it’s the excess return per unit of excess volatility. Active funds should have IR of higher than 1, ideally higher than 1.3 at least to indicate skill.
The information ratio was good when the fund was started and after July 2017 it came down and from July 2017 to today it is not doing good performance.
Portfolio analysis
Stock style chart
Morningstar’s stock style chart shows the ‘style’ of the stocks in the portfolio in terms of size and value/growth style. The centroid shows the weighted average while the zone circle shows how varied the stock styles are.
This Stock Style chat shows that this fund was a large cap growth fund.
Factor profile chart
Morningstar’s factor profile shows the historical style analysis of the stocks in the portfolio in terms of size, value/growth style and other key factors. The blue circle shows the fund relative to the black dot for the category average.
This Chart shows that this fund was volatile and a growth given fund. The fund growth is same to the category average but currently the fund has low volatility compared to 5 years of historical range.
Prepared by – Nisarg Patel, August 2023
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