ISIN INF761K01FL3
Overall analysis
1-yr rolling excess returns is in the range of 2-4% and Tracking Error against benchmark has been in the range of 2-4% for the past 6 months. The fund had given a neutral excess return in comparison to its peers; but has been going upwards in the first quartile over the past 1 year.
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.
As the fund has started recently there is not that big movement in the rolling returns bit from March 2023 the fund is above the third green median line which means it is getting better than the median performance.
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.
At the starting point the fund’s Return was negative but now in June 2023 it is around 2% which means it is improving.
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 fund was active in July 2022 with tracking error of 3.95% and now it has come down to 3.28% in June 2023 which means it is barely 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.
At the start the information ratio was in negative figures which means it is not ideal but now it is around 1 which means its going around being 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.
The style chart of the fund shows that the fund is typically 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.
The factor profile chat shows that the style of the fund is growth,yield of the fund is very low where the momentum is very high,quality of the fund is close to low like volatility and liquidity is low and size of the fund is high as compared to the last 5 yr historical range.
Prepared by – Shreyas Walve, August 2023
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