ISIN INF044D01BX3
Overall analysis
3-yr rolling excess returns is negative. Tracking error against benchmark has been in the range of 4-8% overall; but the funds’ performance in the short run has been deteriorating. The fund had also not given the maximum excess return in comparison to its peers; but has dropped to below the first quartile 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 rolling return of the fund was never above the third green median line from June 2016 so the fund is not good than the 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 not shown 3-year excess returns, significant time around the negative side of the chart , However, the excess return came down from the end of November 2017.
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 of the fund has been between 2-4% from June 2016 to June 2022 which is barely active and from September 2022 it has going upwards till 8% in June 2023 which is too 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 was negative from June 2016 and has gone positive but has not gone above 1 so it is not good for the 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 fund’s style chart shows that typically it is growth fund in the large cap segment.
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 yield is low & momentum is moderate, quality is high,volatility & liquidity is low of the fund & size is large as compared to last 5 yrs.
Prepared by – Shreyas Walve, August 2023
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