3 years rolling excess return and tracking error against benchmark was not good. The short term fund was good for investment but the long term fund was not good for investment.
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.
When the fund was started that time the fund was given good return and at a time it touched 10.8%. And after October 2016 the fund started to go down and till it was in negative.
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.
The snail Trial chats show that the fund was going to the right top part to the left down part its mean’s fund was going to the negative.
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.
The tracking error of the fund was running between 2.5 to 4.5%. This fund faces so many ups and downs.
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.
Most of the time the information ratio is less than 1.5% so it is not an active fund. Only one time fund touched 2.9% in September 2019.
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 is a low volatility and liquidity fund. and this fund is a growth fund. and momentum of this fund was low compared to category average.
Prepared by – <Nisarg Patel>, August 2023