ISIN INF200K01RJ1
Overall analysis
3-yr rolling excess returns remains below lower quartile and has not given good performance and TE against benchmark have been good overall; The fund has not given the maximum excess return in comparison to its peers; and has made moderate progress 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 funds rolling return chart shows that the fund started above the maximum, and moved below the lower quartile in 2019 and is below the lower quartile in 2023.
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 trail chart is not great, but is in the harmless section of the chart. The fund has almost always given returns. The return is more than the risk taken.
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.
TE of the fund has been overall good, In 2016 it started above 6% and has reached a maximum of 12% and has dropped to 5.7% which 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 of the fund has mostly been in negative and reached its maximum of 2.5 but even now it is negative which is not ideal.
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 of the fund shows the fund is a blend of large & mid 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.
The factor profile chart shows that the fund’s growth style, yield, volatility & liquidity is low, momentum & quality is below average and size of the fund is large.
Prepared by – Ashutosh Sahu, August 2023
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