ISIN INF090I01569
Overall analysis
3-yr rolling excess returns of the fund was low till december 2022 but later it started increasing from 2023 and TE against benchmark in 2018 was highly active and later from 2021 TE range is between 4-6% till date. The snail trail charts shows that fund has given higher returns with high risk and IR of the was significantly around 2.5 in march 2023 indicates that the fund is ideal.
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 excess return chart shows that the blue line is above the third green median line which indicates that the fund is better than median performance. The fund’s 3-yr rolling excess return was 3.22% in June 2023 and median was 1.36%.
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 10% per annum and a significant time around the 2-4% pa, whilst higher than index volatility of 2-3% pa. However, the excess return came down to around 4% 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 range is around 4-6%, also in september 2018 the TE crossed 10%. Later it decreased to 4.5% around in 2019 and then it increased to 7.62% in june 2023 which clearly indicates the fund is 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 fund IR is above 1 maximum time on the chart in June 2023 it reached 1.46 which indicates that the fund is 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 typically a Mid 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 style is growth, yield compared to 5 years historical range is low, momentum and volatility factors have shown a wide range. Whereas liquidity is low and quality factor is low in comparison to category average.
Prepared by – Dhruvi Shah, August 2023
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