ISIN INF179K01VK7
Overall analysis
3-yr rolling excess returns has given high return and TE range is between 4-6% which indicates active fund. While snail trail shows the risk & return in positive and as well as in negative. The fund has performed well as compared 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 fund chart shows that in July-2016 the excess return was 8.08% which is above the third green median line but later it started declining and it went to -10.06% in Nov-2023. The fund again gave a massive 3Y-Rolling Return to 8.03% in Mar-2023.
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 exemplary 3-year excess returns, touching 8.03% per annum with risk of 0.25%. However, the excess return came down to around -10.06% per annum with risk of 0.34%.
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.
Tracking Error of the fund has been highly active at the start which was around above 6% and then in 2017 the fund showed moderately active TE i.e. 3-6%. However, after 2021 again it showed High TE i.e. above 6% and came to 3-6% in 2023.
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 was measured to 3.10 in Aug-2014 and then performed neutral for further few years. Then came down to its lowest i.e. -3.27 in Oct-2020. After 2022, IR went to 4.38, which shows that it is an active 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.
The Stock Style chart of the fund shows the 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.
The factor profile chart shows that the fund’s growth oriented, yield & quality is below average, momentum is high, volatility & liquidity is moderately low and size of the fund is quite large.
Prepared by – Ashutosh Sahu, August 2023
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