The 3-yr rolling excess return tracking error against benchmark has been bad overall. When the fund was started that time, it was positive and gave good returns. After some time the fund started to go down and give negative returns. A long duration fund is not good for investment.
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.
Rolling Return charts shows the 2017 fund doing good performance and at a time found it touched 9.5%. After July 2017 the fund started to go down and currently the fund was in negative.
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 shows the most part of the fund in positive and last 1-to-2-year fund was running in negative.
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.
1 year rolling tracking error shows the fund was running between 2% to 3.5%. and so many times it goes up to 3.5%. so, it is an active fund.
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.
When the fund was started, the information ratio of this fund was 1.7 and it went up and down. After March 2020 the fund was not touched again 1.7%.
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.
This fund is a large 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.
This fund is a growth fund, low volatility and liquidity fund. The size of this fund is the same as the category average.
Prepared by – <Nisarg Patel>, August 2023