ISIN INF582M01CU7
Overall analysis
3-yr rolling excess returns is in the range of 2-4%.Tracking error against benchmark has been in range of 2-5% overall and the funds’ performance in the short run has been deteriorating. The fund has given the same excess return in comparison to its peers and is going up in 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 not above the third green median line till December 2021 but then also it is going parallel with the third green median line so the fund is performing as the median is performing.
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 impressive 3-year excess returns a significant time around the negative side of the chart .However, the excess return came down to around 4% September 2020.
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 was above 4% which means it is active but then it has come down but it was between 2-4% which is barely 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 most of the time but it went up to 1.3 in February 2020 which is an ideal and now in June 2023 it is 0.39 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 style chart shows that the fund is typically growth oriented 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 of the fund shows the yield is low, momentum is high & quality is moderate whereas volatility & liquidity is low and size is large of the fund as looking at the last 5 yrs historical range.
Prepared by – Shreyas Walve, August 2023
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