The 3-yr rolling excess return tracking error against benchmark has been bad overall. The rolling return of this fund shows that most of the time this fund was in negative. So, this 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.
The 3 year rolling return of this fund was always negative only one time in March 2022 this fund touched 1.2% after that it came down again.
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.
We can see clearly on the snail trail chart the major part was negative in a few months as in positive.
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.
The tracking error of this fund is always more than 3.5%; it was closest to the index.
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 this fund is always under 1 so it means that the fund is not an active fund.
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. It is good for investment.
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 chart shows that this fund is a growth fund and low volatility and liquidity fund. The momentum of this fund was high compared to category average.
Prepared by – <Nisarg Patel>, August 2023