INF843K01KK1
Overall analysis
The 3-yr rolling excess return tracking error against benchmark has been bad overall. The rolling return charts and all ratios show that this fund gives normal average return, so ideally this fund is not good for 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.
Rolling Return Chart shows the fund was always running between 0 to 3%. Currently the fund is positive.
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 Snail Trail Chart shows the most of the time the fund gave a positive return. And in February 2022 fund touched 3.62%.
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 year rolling tracking error always running between 3% to 5%. August 2019, it touched lowest of 2.8% and May 2022 fund touched highest 5.5%.
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 this fund was running between 1 to -0.5, it was not ideal 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 fund is 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 chat shows that this fund is a growth fund and a medium quality fund. volatility if this fund is very high during 5 years and currently it is low. and momentum of this fund is high compared to category average.
Prepared by – <Nisarg Patel>, August 2023
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