Taurus Flexi Cap Fund – Direct Plan

INF044D01BU9

Overall analysis 

3- years of rolling return of the fund most of the time is more than 5% and tracking error of the fund is 3-6%. So, this is a good fund 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 of this fund shows that the fund is always more than 5%. only september 2019 it came down and after march 2021 it was again go up.

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 annual rolling return of this fund was always negative and in July 2020 it was more than -6%.

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.

We can see on the snail trail chart starting was positive and fund ending was negative. And the fund continued going upside to downside. 

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.

We can see most of the time the fund was running between 3% to 5% at a time when it touched 1.6%. And after May 2022 tracking error went up more than 5%.

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 is a large cap blend 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 growth fund with low volatility and liquidity. Fund has low momentum compared to category average.

Prepared by – <Nisarg Patel>, August 2023