JM Focused Fund – Direct

ISIN INF192K01BW7

Overall analysis 

3-yr rolling excess returns and TE against benchmark have performed excellent in starting with highest return against its peers but during past few years this fund gave negative return. The fund has a high TE. The fund has performed overall moderately as compared to its peer.

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 Rolling return shows that the fund was above the third median line from starting giving highest 3Y-Rolling Return of 13.42% on Aug-2016 but performed worst after Apr-2020. The fund gave a negative return after 2020, giving lowest 3Y-Rolling Return of -8.65% on Sep-2022.

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 impressive 3-year excess returns, touching 13.42% per annum with risk of 5.17%. However, the excess return was negative during past few years.

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 almost above 6% i.e. High TE. The Highest TE was shown at 14.13% during Feb-2014. While the lowest was 3.98% in Nov-2022.

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 2.86 on Jan-2015 which was highest and the lowest was -3.13 on May-2021. 

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 blend of large & mid 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 style, yield, volatility & liquidity is moderately low, momentum is high, quality is below average and size of the fund is quite large.

Prepared by – Ashutosh Sahu, August 2023