ISIN INF173K01EK6
Overall analysis
3-yr rolling excess returns and TE against benchmark have performed well during 2020-2022 but then performed neutral. The fund has a high TE. The Information Ratio above 1 makes it an Active Fund. The fund has performed well as compared 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 Rolling return shows that the fund was above the third median line and showed 3Y-Rolling Return of 4.88% in Mar-2020 and performed neutral as compared to its peer.
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 average 3-year excess returns, touching 4.91% per annum with risk of
-1.54%. However, the excess return was quite low during the past few years.
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.
Tracking Error of the fund has been nearby 1-3 that shows low TE, then after 2020 it went above 6 that shows High TE. After Feb-2021, TE of the fund was sustaining between 3-6.
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 was measured highest i.e. 8.30 in Nov-2020 and was almost above 1 every year. That shows that it is an active fund.
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 large 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 is high, quality average and size of the fund is large.
Prepared by – Ashutosh Sahu, August 2023
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