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Without getting into a long preamble, we invite you to take a look at the data below, which clearly shows you the returns of the various Mutual Funds and PMS Providers, but most importantly they show you where the returns are coming from: Higher Risk or Higher Skill.

Stories can take us only upto a point and fund managers are great storytellers as we all know.

But ultimately it is only data and data alone that matters when it comes to money.

The data below shows clearly that we, at FG, are delivering not just far ‘ahead of market’ returns, but also that these returns are coming with far lower risk, as compared to the market and the major peer group.

A] Comparison of First Global-Indian Super 50 PMS Scheme with various Multicap PMS schemes on various Performance parameters (Small Caps are just 10% of our allocation)

Sr No.

Multicap PMS Scheme

Apr'21

CYTD
(Jan-Apr'21)

Total Return
(%)

(Mar'20-Apr'21)

CAGR since
IS50 Inception (%)

(Mar'20-Apr'21)

Risk/ Volatility
(%)

Risk Adj Return
(CAGR/Volatility)

(x)

Gain To Pain Ratio

(x)

1

FG’s India Super 50

9.00%

22.50%

72.10%

59.30%

20.70%

2.86

4.02

2

Stallion Asset Core Fund

2.20%

9.40%

49.80%

41.40%

28.30%

1.46

1.78

3

White Oak India Pioneers Equity

1.80%

9.20%

40.30%

33.70%

28.50%

1.18

1.49

4

Girik Capital

5.60%

12.00%

34.50%

28.90%

22.80%

1.27

1.43

5

IIFL Multicap Advantage

2.30%

5.70%

34.00%

28.50%

21.20%

1.35

1.76

6

ASK IEP

1.30%

7.70%

27.90%

23.50%

31.70%

0.74

0.92

7

ASK Growth

2.60%

10.50%

27.50%

23.10%

30.40%

0.76

0.97

8

Marcellus Consistent Compounders

-0.10%

-2.30%

26.10%

22.00%

23.60%

0.93

1.06

9

IIFL Multicap

1.90%

5.70%

26.00%

21.90%

35.30%

0.62

0.94

10

Axis Brand Equity

-1.10%

3.00%

25.00%

21.10%

28.30%

0.74

0.91

11

Motilal Oswal BOP

-2.40%

1.80%

23.40%

19.70%

28.80%

0.68

0.89

12

Motilal Oswal NTDOP

-0.90%

6.80%

22.60%

19.10%

30.00%

0.64

0.88

13

Moneylife Mass Prime

5.00%

6.10%

19.40%

16.40%

30.10%

0.55

0.83

14

ASK India Select

1.90%

3.80%

18.80%

15.90%

29.40%

0.54

0.7

15

Alchemy Select Stock

4.70%

12.40%

16.50%

14.00%

34.40%

0.41

0.69

16

Axis core and satellite

-1.40%

2.60%

16.20%

13.80%

27.60%

0.5

0.64

17

Alchemy High Growth

0.30%

2.60%

4.60%

4.00%

31.60%

0.13

0.31

 

Nifty 500

0.50%

7.60%

35.50%

29. 8%

30.70%

0.97

1.29

 

Nifty 50

-0.40%

6.20%

32.60%

27.30%

30.00%

0.91

1.19

B] Comparison of First Global-Indian Super 50 PMS Scheme with various top Multicap Mutual Funds on various Performance parameters

 

Sr No.

Multi Cap Equity Mutual Funds

Apr'21

CYTD
(Jan-Apr'21)

Total Return
(%)

(Mar'20-Apr'21)

CAGR since
IS50 Inception (%)

(Mar'20-Apr'21)

Risk/ Volatility
(%)

Risk Adj Return
(CAGR/Volatility)

(x)

Gain To Pain Ratio

(x)

1

FG’s India Super 50

9.00%

22.50%

72.10%

59.30%

20.70%

2.86

4.02

2

Nippon India Multi Cap Fund

0.00%

15.30%

22.50%

19.00%

38.70%

0.49

0.71

3

ICICI Prudential Multicap Fund

0.50%

10.20%

31.00%

26.00%

32.70%

0.79

1.07

4

Axis Capital Builder Fund

0.60%

5.70%

27.50%

23.20%

29.50%

0.79

0.96

5

Invesco India Multicap Fund

1.50%

10.10%

30.10%

25.30%

32.10%

0.79

1.15

6

Baroda Multicap Fund

2.10%

11.00%

36.90%

30.90%

28.20%

1.1

1.38

7

Nippon India India Opportunities Fund

0.40%

11.20%

25.20%

21.30%

38.40%

0.55

0.76

8

Principal Multi Cap Growth Fund

0.40%

9.30%

29.90%

25.10%

29.80%

0.84

1.16

9

Sundaram Equity Fund

0.70%

10.50%

31.00%

26.10%

31.10%

0.84

1.2

 

What do these ratios signify? 

Let us break it down for you in the most simplest of language:

(For those interested, the formulae used for all the calculations are given at the end of the blog)

1.  Volatility or Risk: The Volatility or Risk of a portfolio of stocks is a measure of how wildly the total value of all the stocks in that portfolio varies. A portfolio's volatility is calculated by calculating the standard deviation of the entire portfolio's returns.

 As is clear from the table above, the Volatility of our portfolio is very low compared to our peers as well as when compared with the markets.

The volatility of our returns is the lowest in the whole market. It is one third below the market volatility and as the next calculation shows it is even lower as a proportion of returns we have generated.

2.  The Risk Adjusted Return (RAR) compares the portfolio’s return versus the standard deviation of returns. It is calculated by dividing the Annualized returns by the Annualized Volatility.

It captures the amount of returns for each unit of risk.

For First Global this ratio is 2.86 as against 0.9 for the market.

More to the point there is no other PMS or Mutual Fund that has reached the value of 2.5, 2 or even 1.5 clearly showing that not only have we got the highest returns in the market for our investors, these returns have come at very very low volatility and risk. The returns per unit of risk are double of the next best player and nearly three times the value for the market.

3.  Gain to Pain ratio: This is one of the best measures of return and risk profile of any fund.

The formula to calculate this ratio is: Total Returns ÷ Absolute value of negative returns.

So, the numerator is the sum of all monthly returns, positive and negative through the year. The denominator is the absolute value of the negative returns, for the months when the returns were negative.

We illustrate this through a simple example

 

Jan

Feb

Mar

Apr

May

June

July

Aug

Sep

Oct

Nov

Dec

Returns (%)

5%

-3%

-3%

4%

5%

6%

7%

8%

10%

10%

-5%

6%

 

The sum of all Monthly Returns is 50.0

The absolute value of all return deficits (-3.0, -3.0, -5.00) is -11.00

The Fund's Gain to Pain Ratio is 50.0/11.0= 4.54

Our Gain to Pain ratio at over 4 is way ahead of other PMSes and funds, none of which are at 4, 3 or even 2. The market's gain to pain is a measly 1.3

This our returns have come with minimal pain or minimal drawdowns.

The reason for First Global's performance with higher returns and lower risk on all measures are not because of some great magic!

It is because of using some of the most advanced investment analysis technologies known to man, and building an investment tech stack, our FG ExoTech, that reduces the role of luck and increases the role of skill dramatically.

Do you want your fund managers to be relying on their luck or on genuine skill? We think the answer is clear.

The above data shows you where the skill is.

We look forward to being partners in your wealth creation journey.

Ratio Calculation Details

Sample Variance Calculation

Let us consider the Monthly returns of a PMS fund over a 1 year period.

 

Jan

Feb

Mar

Apr

May

June

July

Aug

Sep

Oct

Nov

Dec

Returns (%)

5%

3%

3%

4%

5%

6%

7%

8%

10%

10%

5%

6%

% Deviation = Return -Mean

-1.0%

-3.0%

-3.0%

-2.0%

-1.0%

0.0%

1.0%

2.0%

4.0%

4.0%

-1.0%

0.0%

Squares of Deviation

1%

9%

9%

4%

1%

0%

1%

4%

16%

16%

1%

0%

Mean=Total Returns/12=72/12=6%

Variance=Total of the Squares of Deviation of all months/12=62/12=5.17

Monthly Standard Deviation=Square root of Variance =2.27

Annualized Std. Deviation=2.27*Square Root of 12="2.27*3.46=7.86%

Hence, Annualised Volatility=Annualised" Std Deviation=7.86%

Sample calculation of Risk Adjusted Returns (RAR)

RAR formula = Return on Portfolio ÷ Standard deviation

For example if the return is 12% with 10% standard deviation, then RAR = 12÷10 = 1.2

From the desk of 

Devina Mehra & Shankar Sharma

Enquire Now

If you want any help at all in your wealth creation journey, in managing your Investments, just drop us a line via this link and we will be right by your side, super quick!

Or WhatsApp us on +91 88501 69753

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