ISIN INF966L01AA0
Overall analysis
3-yr rolling excess returns have given higher returns against the benchmark and TE ranges above 6% which indicates that the fund is active.. The fund had given a high excess return in comparison to its peers.
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 3-year rolling excess return chart shows that the fund was not performing well in the beginning better it started giving good returns compare to benchmark and its peers. In charts it clears shows that the blue line is above third green median line and upper quartile, which means the fund is better than median performance.
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 20% per annum and a significant time around the 4-6% pa, whilst lower than index volatility of 2-3% pa. However, the excess return went up to 20% till then end of June,2023.
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 chart says the fund range is more than 4% till June,2023, which indicates that the fund is reasonably 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.
The information ratio chart shows that the fund IR is above 1, which means the fund is ideal and it indicates skills.
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 is typically a blend of large, mid and small cap value and 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.
The factor profile chart shows that the fund style is growth oriented, yield is low, momentum and quality factor has shown wide range in 5-yrs historical range, volatility of fund is moderate, liquidity is moderately low.
Prepared by – Dhruvi Shah, August 2023
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