DSP  regular savings fund direct plan growth

Rolling returns in quartiles

The 3-year excess rolling returns are below the zero mark (ranging from 0 to -2%) across the hybrid conservative bond. The median returns have gradually come down from +2 % in May 2016 to -1% in April 2023. The dispersion between upper and lower quartile is very wide at +6 to -2% p.a. 

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The fund has generated negative returns over the years and gave positive returns from February 2022. In Feb 2023, the excess returns were around 2% per annum. 

Rolling risk/return (snail trail)

Funds in this category have shown slightly higher ( 0 to 4.5) standard deviation compared to the volatility of the index.

C:\Users\admin\Documents\Hybrid conservative fund WIP dossier\DSP SD.png

The fund has shown a significant time around 1 to -3.5% per annum, whilst higher than the index volatility of 0 to 3.5% per annum. However, in May 2023, the excess returns went up to around 2.5%.

Tracking error

The tracking error ranges between 1% to 4% for the period May 2016 to May 2023.

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The tracking error was the highest at 6.5% in May 2020 and came down to 2 in 2023. However, in May 2023, the tracking error came down to around 2%. The overall range has been around 2 to 6%.

Information ratio 

The rolling IR has been quite volatile ranging from -2.5 to +2 making it difficult to discern any skill.

C:\Users\admin\Documents\Hybrid conservative fund WIP dossier\DSP IR.png

In April 2021, the information ratio reached the peak at 2.9. However, in May 2023, the ratio came down to -1. The overall range has been around -2 to +2.

Prepared by – Akash Damani, June 2023

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