The 3-yr rolling excess return tracking error against benchmark has been good overall. The 3 years of rolling return ratio of this fund was low and sometimes negative. All ratios are giving signs that this fund was good for investment.
Rolling return in quartiles
The rolling return chart shows excess 3-year annualized 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 Bank of India Flexi Cap Fund was Only 3 year old fund, during this 3 year when the fund was started that time gave a satisfied return after that time fund was given normal 1% to 2% of return.
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.
During this 3 years of fund life Only 2 months was giving a good return. And most of the time it was negative.
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.
When the fund was started, the time tracking error of this fund was more than 6% and after some time it came down and currently tracking error of this fund was 3%.
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.
Information ratio of this fund continues to come down and most of the time this ratio is near 1 and negative, so it is not a good sign for the fund.
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 Bank of India was a large cap blend 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 low growth compared to category average. also we can see fund momentum is high compared to category average and volatility is low compared to 5 years of historical range.
Prepared by – <Nisarg Patel>, August 2023