INF663L0FF1
Overall analysis
3-yr rolling excess return and tracking error against benchmark have been good overall. When the fund was started it was giving negative returns after some time it came up. So the long term fund was 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.
3 year Rolling return of this fund it shows that when fund was started that was going in to negative and it touched -3.8% on August 2018 after that On December 2019 fund was started to going upside and at a time on December 2021 fund was touched 12.3%. Currently fund is positive.
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.
Snail trail chats show that the fund was in the top right side doing good performance. Only a few months of this fund is on the negative return part.
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.
When fund was started that time tracking error of this fund is between 3% to 4%. After December 2019 tracking error of the fund was go to the upside ant touched 7%. And currently the fund tracking error was nearby 5%.
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 less than 1.5% only April 2020 to June 2022 it was going more than 1.5% and again it was coming down after June 2022.
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
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 chat shows that this fund is a growth fund compared to category average and low volatility and low liquidity. Also, fund momentum is high compared to category average.
Prepared by – <Nisarg Patel>, August 2023
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