ISIN INF754K01BW4
Overall analysis
3-yr rolling excess returns is in the range of 3-5% and tracking error against benchmark has been in the range of 2-4% which is ideal overall and the funds’ performance in the short run has been also good. The fund has given the maximum excess return in comparison to its peer and has been going upward over the past 1 year.
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 of the fund shows that the fund is above the third green median line all the time which means it is better than the median 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 good 3-year excess returns, touching 2.89% per annum and a significant time around the 0-2% pa, whilst lower than index volatility of 2-3% pa. However, the excess return came down to around -1.36% in September 2018.
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 of the fund was negative in September 2016 and then went up and was 2-4% which means it is barely considered as 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.
This fund was negative in June 2016 till December 2017 then was positive mostly around 1-2 and now it is around 2 which is good.
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 style chart shows that the fund is growth oriented in the large segment.
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 yield of the fund is low and momentum & quality of the fund is moderate and Volatility & Liquidity is low and size of the fund is large as compared to the last 5 yrs historical range.
Prepared by – Shreyas Walve, August 2023
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