Canara Robeco Flexi Cap Fund – Direct Plan

INF760K01EF0

Overall analysis

The 3-yr rolling excess return tracking error against benchmark has been bad overall. When the fund was started that time, it was negative, only for some time it came up and again came in negative. So, this fund was not good for long term investment.  

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 Rolling Return chart of the Canara Robeco Flexi Cap Fund shows the October 2018 blue line cross the median green line it means the fund was doing good preformation and in 2023 fund was going into negative. 

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.

3 years of rolling return in the snail trail chart shows most of the time the fund was given average and negative return only one time it was going to 6%.

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.

1 years rolling Tracking Error of the fund showed the March 2020 to December 2020 was above 6% after all the time tracking error of the fund was below 4%.

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 of the Fund showing the few months of the total month was above 1, and the rest of months are less than 1 either negative so it was not good for the 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 varied the stock styles are.

This canara robeco flexi cap 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 fund was a growth fund. and this fund has low volatility compared to 5 years of volatility and currently fund momentum is high compared to category average and 5 years of historical range.  

Prepared by – <Nisarg Patel>, August 2023