ISIN INF769K01EU0
Overall analysis
1-yr rolling excess returns and TE against benchmark have been good at starting; and the funds performance in the short run has been impressive. The fund had given the maximum excess return in comparison to its peers during Nov-2021 but then this fund performed neutral as compared to its peers.
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 funds rolling return chart shows that the fund crosses the third green median line which indicates the fund is better than median performance. On Mar-2021, the fund gave the highest 1Y-Rolling Return of 12.34%. But later on, after June-2022, the gave negative return comprising lowest 1Y-Rolling Return of -10.46% on Nov-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 1-year excess returns, touching 12.34% per annum with a risk of -1.14%. However, the excess return came down to around -10.46% on Nov-2022.
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 between 3-6%, which shows this fund is moderately active.
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 of 1Y-IR shows excellent at starting to 2.98 on Mar-2021 but it went down during the past few years. Currently in June-2023, it was measured -1.42.
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 low, momentum & quality is below average and size of the fund is quite large.
Prepared by – Ashutosh Sahu, August 2023
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