ISIN INF760K01JC6
Overall analysis
3-yr rolling excess returns of the fund is above first quartile and TE against benchmark have been active and also the funds’ performance in the short run has been increasing. The fund had given a high excess return in comparison 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 3-yr rolling excess return chart shows that the fund has given high returns compared to peers and 3-yr rolling excess return is above 10%.Later in June 2023 it decreased to 7.41%, which is above median and first quartile, indicating better performance of the fund.
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 15% per annum and a significant time around the 12-15% pa, whilst higher than index volatility of 2-4% pa. However, the excess return came down to around 7% 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 has performed well against the benchmark and the fund range is between 4-6% which indicates that it is reasonably active. In december 2020 it touched 12.87% and later it started detoring
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 IR was 4 in March 2022 and the fund performance was ideal in the year 2021-22 but later IR decreased to -0.87 in June 2023 which says it 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.
The stock style chart says that the fund is 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 is growth oriented, yield is low compared to 5-yr historical range, momentum factor shows wide range and high category average and volatility and liquidity is moderately low compared to category average.
Prepared by – Dhruvi Shah, August 2023
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