UTI Flexi Cap Fund – Direct Plan

INF789F01TC4

Overall analysis

3-years rolling return of the fund most of the time in negative. Tracking error of the fund is 3-6% and other ratios this fund was good for long term investment. For the short term this fund has seen so many ups and downs. 

Performance analysis

Rolling return in quartiles

The rolling return chart shows excess 3-year annualized 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-year rolling return of this fund started with 3.2% and after some time it was going down to negative and touched -3%. In October 2019 it was going up and touched 7.7% of the highest. Again, it was come down and currently in negative.

Rolling Risk/return (snail-trail)

The rolling risk/return chart shows excess 3-year annualized returns relative to the index. The top left quadrant would indicate higher returns with lower volatility than index.

Snail Trail charts show that this fund was a very volatile fund. This fund was do so many time ups and down.

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.

Tracking error of this fund was between 3% to 7%. 

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.

Information ratio of this fund was running in negative for some time and after it went up and maintained between 0 to 2. After December 2021 it was again negative and currently in negative.

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 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.

This is a growth fund with low volatility and low liquidity. momentum of the fund was low compared to category average and quality of the fund is high compared to category average. 

Prepared by – <Nisarg Patel>, August 2023

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