ISIN CODE INF740K01PX1
Overall analysis
3-yr rolling excess returns is not so good in the range of -2-9% and tracking error against benchmark also have been in the range of 4-6% and the funds’ performance in the short run has been deteriorating. The fund has given the maximum excess return in comparison to its peers; but has dropped to below the third line (median) over the past 2 years.
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 rolling return chart shows that the fund has performed well from the start compared to the third green median line but after Sep 2021 it has crossed the green median line which indicates low performance of the fund. The fund’s maximum rolling return of the fund is 8.18% and the minimum rolling return is -14.31%.
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.
The fund initially outperformed the benchmark while carrying a comparatively greater risk, but after July 2019 it did so while carrying a relatively lower risk, and after October 2021 it underperformed the benchmark while carrying a relatively lower risk.
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 TE of the fund has been reasonably active from the start which is between the range 4-6% but after Feb 2023 the TE fell down to 3.3% which indicates the fund is barely active from Mar 2023.
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.
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 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 chart shows that the fund is more on the growth side,yield of the fund is low, momentum of the fund is moderate and currently it is lower than the category average. The quality of the fund is high,volatility of the fund is very low,liquidity of the fund is also low and size is around the small side.
Prepared by Bhavesh Mahajan, Aug 2023.
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