3-yr rolling excess return and tracking error against the beach mark was not good overall. The rolling return of this fund is always negative and other ratios also show that this fund is not good for investment. This fund is always negative so this fund is not 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 rolling return of this fund is always negative. Only on time this fund touched 1%.
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 clearly see on this snail trail chart the fund is only one time touched 1% and most of the part of this fund is in the down left negative part.
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.
Tracking Error of this fund is more than 2.5%. it is always between 2.5% to 4.5%. so, it is not an ideal 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.
Information ratio of this fund is under 1 and sometime in negative after April 2020. So, it 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.
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 with low volatility and liquidity compared to 5 years of historical range. and fund size is medium compared to category average.
Prepared by – <Nisarg Patel>, August 2023