IDBI Focused 30 Equity Fund – Direct Plan 

ISIN INF397L01KA7

Overall analysis

1-yr rolling excess returns and TE against benchmark have been neutral overall; and the funds’ performance is good. The fund has given a neutral return in comparison 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 funds rolling return chart shows that the fund crosses the third green median line which indicates the fund is better than median performance. The fund has shown excellent performance of 5.36% on May-2020 at starting but later on after 2021, it gave lowest 1Y- Rolling Return of -15.78%.

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 1-year excess returns, touching 5.56% per annum with a risk of -0.92%. However, the excess return was positive & negative as well.

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 good which was around 3-6%. It shows that this fund is Moderately 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 of the fund of 1Y-IR shows neutral. It went highest 1.24 on May-2020 and  lowest -6.05 on May-2021. 

Prepared by – Ashutosh Sahu, August 2023