The performance of IDFC Premier Equity is reviewed using the upside and downside capture data from MorningStar India along with the returns data at VR. There are have been some concerns about the fund’s recent performance and these were compounded when fund manager Kenneth Andrade left in Sep 2015.
A couple of days ago I had posted a performance review of HDFC equity using the sliding NAV chart at VR. If you have not seen that video, I suggest you do, so that you might consider repeating that exercise for IDFC Premier Equity. While a 5 or 7-year window is necessary to observe consistent outperformance in HDFC Equity, only a 3-year window is necessary for the IDFC fund. In general any fund should be given at least 5-years to perform.
Here is a 7.5 min video review. I have many posts on upside and downside capture ratios. You can take a look, if you like the idea discussed in the video.
I feel like a kid at a candy store while making these. This time, apologies for the frequent use of the word ‘spectacular’. It is a bit annoying. I am not an investor in this fund and I have reviewed it as an analyst.
Note: The benchmark is BSE 500. Morning Star, in its wisdom, has used Nifty Midcap 100 to calculate the capture ratios. I think this is a more stringent measure of upside and downside capture.
I would like to reiterate that investors should evaluate fund performance only from the time that they started investing in the fund and not rely on star ratings. Performance depends on when we choose to analyze and over what period. One can use the Mutual Fund SIP Rolling Returns Calculator or the Multi-index Mutual Fund Rolling Returns Calculator for deeper analysis.
If you have suggestions on video topics, do let me know.
Buy our New Book!You Can Be Rich With Goal-based Investing A book by P V Subramanyam (subramoney.com) & M Pattabiraman. Hard bound. Price: Rs. 399/- and Kindle Rs. 349/-. Read more about the book and pre-order now!