ISIN INF209K01WN4
Overall analysis
3-yr rolling excess returns has been in negative from december 2019 and TE ranges between 4-6% which indicates that the fund is active; but the funds’ performance in the short run has been deteriorating. The snail trail chart shows that the fund has given returns with high risk. The IR shows that the fund is not ideal.
Performance analysis
Rolling returns 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 rolling excess return chart shows the blue line below the third green median line and fourth green lower quartile line which indicates the fund has not performed better than median and its peers.
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 8% per annum and a significant time around the 4-6% pa, whilst lower than index volatility of 2-3% pa. However, the excess return came down to around -2% to -4% towards the end of June, 2023.
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 2-4% range considered to be barely active, 4-6% range considered to be reasonably active and anything higher attributed to concentrated/focused funds. Funds with TE of less than 2% can be considered to be closet indexers.
The tracking error chart shows that the fund had a good start with the 6-8% range but gradually it came down to 5.09% which indicates that the fund is reasonably active.
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 chart shows that the fund had a good start with the range more than 1, which is ideally active but later it fell to -3 to -4 in March, 2022 and came up to the 0.23 which clearly indicates that the fund is not ideal.
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.
Stock style chart shows that the fund is typically a mid 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.
The factor profile chart shows that the fund style is growth oriented, momentum factor has a wide range in 5-yr historical range and the category average is high. The volatility factor has also shown a wide range but the liquidity and yield factors are low.
Prepared by – Dhruvi Shah, August 2023
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