ISIN INF204K01K15
Overall analysis
3-yr rolling excess returns and tracking error against benchmark have been good overall and the funds’ performance in the short run has been also good. The fund has given the maximum excess return in comparison to its peers and has gone above in 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 rolling return chart of the fund has always been above from June 2016 to June 2023 so the fund is always better than median performance. It is a good fund to invest in.
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 3-year excess returns, touching 14.16% per annum and a significant time around the 5-10% pa, whilst lower than index volatility of 2-3% pa. However, the excess return came down to around 4.60% towards the end of 2021.
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.
The tracking error of the fund was at 6% in June 2016 and always was between 3-6% which is too much active fund and in June 2023 4.05% which is barely 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.
Looking at the information ratio was 1 in 2016 but has also gone to 5 which is good for the fund but has come down to 2.3 which is also good.
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 shows that the fund style is a blend of large, mid and small cap growth funds.
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 style is growth, compared to 5 years historical range yield is low,, momentum and quality is high, volatility is moderate, liquidity is low, fund size is small cap.
Prepared by – Shreyas Walve, August 2023
You must be logged in to post a comment.