Indiabulls Value Fund – Direct Plan

ISIN INF666M01BE4

Overall analysis 

3-yr rolling excess returns in the snail trail chart shows that the fund had not given positive returns over the years. Although the TE and IR of the fund shows that it was actively managed in the start it has also been below 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 giving negative returns from the start, with 8.5% being the lowest of all. The fund gave returns between -4% to -8% from the year 2018 to 2021.

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 shows that the fund had a rocky start with returns of -5% to -8% and risk 0.5%. The fund has not reached the positive return quartile since the beginning.The fund outperformed the index with relatively high risk a couple of times. But mostly, the fund underperformed.

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 shows that the fund was relatively active from the beginning, it was 8.7% high in the mid 2018 and later declined to 4%. The fund’s TE lies between 3-6% throughout the years and currently is 2.9%.

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 achieved 2.4% in the start, although it has relatively went down the minimum level and has been negative for the most of the time which indicates that the fund was not actively managed.

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