INF966L01911
Overall analysis
The 3-yr rolling excess return tracking error against benchmark has been good overall. When the fund was started, that time fund gave a good return. In 2018 to 2021 fund was doing bad performance and after 2021 fund came again in upside and gave positive return. Overall 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.
The 3 years rolling return chart of this fund shows the fund was always doing good performance, only December 2018 to July 2020 fund was going down side. Now again the fund has come back to the original level.
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.
In the 3 years of the snail trail chart, we can see the fund touched 21.4% in December 2022. It was a massive return touched by the fund. Only a few months fund in negative most of the time fund in positive.
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.
All time this fund was above 4%, we can see clearly it was barely an active fund.
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 the fund was under 1, only twice it was going up and touched more than 3% and again it came down.
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 was 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.
When you see the 5 years of the historical range of this fund, the fund was in a high growth range. but volatility and liquidity is low compared to 5 years of fund historical range.
Prepared by – <Nisarg Patel>, August 2023
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