ISIN INF251K01PN0
Overall analysis
3-yr rolling excess returns is giving negative returns and TE range is between 4-6% indicates the fund is active. 3-yr rolling returns in quartiles was neutral, while snail trail shows low returns with low risk. The fund has not performed well as compared to its peers.
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 funds rolling return chart shows that after Aug – 2021, the fund was going along with the third green median line and later on Sep – 2022 it moved down the third green median line which indicates the fund is neutral as peer comparison.
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 shows the risk of -1.917% and 3Y Rolling Return: 0.56% on Sep-2021. However, on Mar-2023 Risk was measured -1.582% and Rolling Return came down to lowest -5.24%.
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.
Tracking Error of the fund has been good at the start which was around 6-7% and it moved to 7-8% in July 2020 but later on Feb-2022 it came to lowest i.e. 2-3% which indicates 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.
The Information Ratio was measured in negative earlier but then it went to 3 on Sept-2019 and then came down at lowest during Covid-19 crises to nearby -4.5. Till date after 2020 it didn’t even go up to 1, which indicates that it is not an ideal to Active fund.
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 variedThe stock styles are.
The Stock Style chart of the fund shows the fund is 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 chart shows that the fund growth style, yield, volatility & liquidity is moderately low, momentum is high, quality is above average and size of the fund is quite large.
Prepared by – Ashutosh Sahu, August 2023
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