ISIN INF677K01155
Overall analysis
3-yr rolling excess returns and tracking error against benchmark have been not good overall and the funds’ performance in the short run has been deteriorating. The fund had also not given the maximum excess return in comparison to its peers; but has dropped to below the first quartile over the past 1 year.
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 fund has never been above the third green median line so the fund is not better than median performance.
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 good 3-year excess returns, touching 3% per annum and a significant time around the negative side 4-6% pa, whilst lower than index volatility of 2-3% pa. However, the excess return came down to around -5.20% in August 2018.
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.
At the start in June 2016 it was 2.50% and also was between 2-4% which is considered as the barely active which is good for investing in this fund.
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 the fund was in negative from June 2016 to June 2019 has gone above till 2 but right now in June 2023 -0.25 which is not ideal.
Prepared by – Shreyas Walve, August 2023
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