ISIN INF740K01QD1
Overall analysis
3-yr rolling excess returns has given high returns against the benchmark and TE of the fund is above 4-6% which indicates active fund; but the funds’ performance in the short run has been deteriorating. 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-year rolling excess return chart shows that the blue line is above the third green median line and upper quartile, which indicates that the fund performance is better than the median performance. The fund 3-yr rolling excess return was around 20% till june 2017 but later it decreased and came down to 1.36% in june 2023 which is said to be a drastic fall in the fund performance.
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 2-6% pa, whilst higher than index volatility of 2-4% pa. However, the excess return came down to around 1% 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 is around 4-5% range maximum time on the chart and also it was above 7% till december 2020 and currently it is 5.31% in June 2023 which says the fund is very 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 chart shows that the risk adjusted return was around 2 till september 2020 but later it came down to -0.003% in June 2023 and the IR is below 1 maximum time, that means the fund 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 shows that the fund is a blend of mid cap and small 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 style of fund is growth, yield is low compared to 5 years historical range and category average, momentum factor has shown a wide range. Whereas the volatility factor has also shown a wide range but category average is low but liquidity is low.
Prepared by – Dhruvi Shah, August 2023
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