ISIN INF582M01EK4
Overall analysis
The 3Y rolling returns chart shows that the fund has not been generating alpha returns. TE of the fund is ideal and seems to be actively managed. But the IR of the fund is below the required benchmark.
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 3Y rolling excess chart of the fund shows that the performance of the fund had a rocky start and did ot generate positive alpha for years. The fund started to generate positive alpha from the year 2020 with 2.29% in Jan 2021. But the fund has been deteriorating again since Apr 2023 and is generating negative alpha.
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 snail trail chart of the fund rolling excess risk/return shows that the fund hasn’t performed well as it lies in the bottom left which indicates that the returns and risks were negative of the fund. By the end of June 2023 the fund shifted to the top left quadrant indicating that the returns were getting better.
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 TE of the fund wasn’t ideal in the start although the TE since mid 2022 started getting up to the benchmark with TE between 3-5%.
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.
IR of the fund seems lower than the expected benchmark, the IR has been less than 1% for the most of the time.
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 of the fund shows that it is slightly different from the category average. The fund’s centroid is in the Large growth section. The ownership zone of the fund shows investments are majorly in large blend and large growth stocks, some mid caps investments can be seen.
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 fund’s factor profile shows that the style of the fund is closer to the blend orientation and above the category average. The fund’s dividend/buyback yield is low. The assets have not grown throughout as a result momentum is lower than the category average. The fund’s profitability is low, the volatility and liquidity seems very close to low. The market capitalization of the category average is closer to mid and large-cap.
Prepared by – Ayushi Shervegar, August 2023
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