IDBI Long Term Value Fund – Direct Plan

ISIN INF397L01KU5

Overall analysis 

The rolling excess returns were negative or below 0% throughout the period, the TE and IR of the fund wasn’t up to the required benchmark. 

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 3Y rolling return chart shows that the fund has been negative or below 0% throughout the fund’s performance which indicates that the fund has been not up to the benchmark.

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.

The snail trail chart of the fund is in the bottom left corner which indicates that the fund has not been giving positive returns. The 3 year rolling return can be seen in the under performance spectrum. 

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.

TE of the fund was reasonably active in the start and then it gradually declined to being barely active by the year 2022 with TE of 3-3.50%. TE of the fund is currently at 3.3%.

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 was consistently below the minimum required level. The fund has not crossed 1% in the chart which shows that the fund is barely active. TE of the fund currently is at -0.4%.

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.

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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.

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Prepared by – Ayushi Shervegar, August 2023