Motilal Oswal Flexi Cap Fund – Direct Plan


Overall analysis 

The 3-year rolling return of the fund shows that When the fund was Started that time fund was in positive give 5-15% and after some time fund started to come down and currently in negative. Tracking error of this fund is 5-7% So, this fund was not good for investment.

Performance analysis

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 Chart shows that in March 2017 fund touched 17.2% and after that fund continued to decline it never came back that return. And currently the last rolling return of this fund is -9.2%.

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.

On Snail Trail chats show that one time fund touched 17.1% after that it was going down and down.

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 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 shows that the fund was not going down under 4.5%, so it is very far from the index.

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.

Information ratio of this fund is under 1 only one time it touched more than 2. After December 2017 it did not come again on that point.

Prepared by – <Nisarg Patel>, August 2023


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