IDBI Flexi Cap Fund – Direct Plan

INF397L01HF2

Overall analysis

The 3-yr rolling excess return tracking error against benchmark has been bad overall. All ratios show that this fund was in negative and it is not an active fund. So, this fund was 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.

The rolling return chart shows the after April 2017 fund came directly to 8.16% to -4.67% and after that move fund was not doing well.

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.

We can see a major part of this fund is under risk area so it is not a good form fund only one time in March 2017 fund was touched 7.38%.

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.

Tracking Error of the fund was between 4% to 8% after March 2021 it came down and under 4%, and it is not going up again more than 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.

Information ratio of the fund is maintained between 1.5 to -1.5 only three times it was going down more than -1.5 and one time it was going more than 1.5.

Prepared by – <Nisarg Patel>, August 2023