ISIN INF959L01CH6
Overall Analysis
The fund’s rolling returns and TE show that the fund actively tried to beat the benchmark. The fund moderately performed against other funds and its own benchmark.
Performance Analysis
Rolling returns in quartiles
The rolling return chart shows excess 3-year annualized returns in the context of peer return quartiles. The blue line’s time above the third green median line indicates the fund’s better than the median performance of the benchmark.
The 3-year rolling returns show that the fund’s performance is low. The fund had the highest return of 1.71% on Sep 2021. The lowest is -2.34% on Sep 2022.
Rolling Risk/return (snail-trail)
The rolling risk/return chart shows excess 3-year annualized returns relative to the index. The top left quadrant would indicate higher returns with lower volatility than the index.
Snail trail shows that the fund did have a volatile run. The fund outperformed the index with low risk from Jan 2019- Jun 2021 with returns averaging between 0.38%-1.71%. The volatility has generated an average risk level between -0.063%- -1.31%. The highest the fund has returned is about 1.71% with -0.188% risk
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, the 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.
The fund has its tracking error ranging between 2.5%-7%. The fund had active management throughout the years, and the recent drop in TE shows passive management. The fund currently has a TE of 3.0240% as of June 2023.
Information Ratio
The information ratio is a measure of risk-adjusted return as its excess return per excess unit of volatility. Active funds must have an IR higher than 1, higher than 1.3 is considered ideal.
IR shows that the management actively tried to beat the benchmark. The fund generated good risk-adjusted returns. A peak of 2.76 was in Jan-2022 and it started deteriorating till it reached a down level of -1.0770 on Jan-2023. Currently, the fund holds at -0.1010 as of June 2023.
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 assets are allocated among large-cap growth and blended stocks. Mid-cap growth stocks make up the next largest assets of the fund. The fund also has a reasonable amount of small-cap stocks and other investments.
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 style factor shows the fund is growth-oriented. Low yield and moderately high momentum can be explained by the diversification of investments among growth stocks. The fund has a quality higher than the category average. Growth funds can be seen with low volatility and liquidity. The fund’s capital size is mid.
Prepared by Sai Mahesh, August 2023
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