IFRF vs NIFTY Performance Comparison (As of 30 May 2025)

Performance Summary Table

Period	IFRF Return (%)	NIFTY Return (%)	Relative
1 Month	🟢 3.84 (▲ IFRF)	2.05	IFRF outperformed
3 Months	🟢 13.98 (▲ IFRF)	12.25	IFRF outperformed
6 Months	🔴 1.16 (▼ IFRF)	2.92	IFRF underperformed
1 Year (annualized)	🔴 7.28 (▼ IFRF)	10.10	IFRF underperformed
2 Years (annualized)	🟢 17.72 (▲ IFRF)	14.71	IFRF outperformed
3 Years (annualized)	🟢 15.35 (▲ IFRF)	14.39	IFRF outperformed
Since Inception (20 Oct 2021) (annualized)	🟢 14.99 (▲ IFRF)	13.07	IFRF outperformed

Notes:
• All multi-year returns are annualized IRR, adjusted for inflows and outflows.
• Dividends and interest are assumed reinvested.
• Fundreturns are net of fees but pre-tax. NIFTY IRR is simulated by mapping IFRF cashflows into the index.

Notes:

• All multi-year returns are annualized IRR, adjusted for inflows and outflows.
• Dividends and interest are assumed reinvested.
• Fund returns are net of fees but pre-tax. NIFTY IRR is simulated by mapping IFRF cashflows into the index.

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Period-Wise Analysis

1 Month

• IFRF: 3.84%

• NIFTY: 2.05%

• Outcome: IFRF outperformed by 1.79%

• Insight: Recent month’s momentum favored IFRF’s tactical stock picks, capturing outperforming mid-cap or thematic segments.

3 Months

• IFRF: 13.98%

• NIFTY: 12.25%

• Outcome: IFRF outperformed by 1.73%

• Insight: Over the last quarter, effective selection in financials, industrials, or other high-momentum sectors drove above-benchmark returns.

6 Months

• IFRF: 1.16%

• NIFTY: 2.92%

• Outcome: IFRF underperformed by 1.76%

• Insight: Broad market large-cap rallies (especially in technology or staples) outpaced IFRF’s defensive or value-oriented holdings.

1 Year (annualized)

• IFRF: 7.28%

• NIFTY: 10.10%

• Outcome: IFRF underperformed by 2.82%

• Insight: Underweights in high-flying sectors and a disciplined valuation approach resulted in lagging returns during a large-cap-led market cycle.

2 Years (annualized)

• IFRF: 17.72%

• NIFTY: 14.71%

• Outcome: IFRF outperformed by 3.01%

• Insight: Sustained outperformance over two years reflects strong stock selection and sector rotation, capturing opportunities across market phases.

3 Years (annualized)

• IFRF: 15.35%

• NIFTY: 14.39%

• Outcome: IFRF outperformed by 0.96%

• Insight: Despite short-term lags, IFRF’s long-term process of focusing on fundamentals and risk management delivered consistent excess returns.

Since Inception (20 Oct 2021 – Jun 2025, annualized)

• IFRF: 14.99%

• NIFTY: 13.07%

• Outcome: IFRF outperformed by 1.92%

• Insight: Since launch, IFRF’s disciplined approach—identifying quality opportunities and managing drawdowns—has generated nearly 200 basis points of annualized excess returns.

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Key Insights and Investment Implications

• Short-Term (1M & 3M) Outperformance:
  – IFRF’s ability to identify near-term momentum in select sectors or stocks led to meaningful outperformance.
  – Suitable for investors seeking tactical alpha from active management.

• Mid-Term (6M & 1Y) Underperformance:
  – Large-cap dominance in technology, consumer staples, and financials favored NIFTY, while IFRF’s focused/value holdings lagged.
  – Investors should expect periods of tracking error when market leadership shifts to areas outside IFRF’s core holdings.

• Long-Term (2Y, 3Y, Since Inception) Outperformance:
  – Multiple periods of outperformance highlight the fund’s consistent stock selection and dynamic sector allocation.
  – Over a full market cycle, IFRF’s process has delivered excess returns, reinforcing the value of an active approach.

• Volatility and Drawdowns:
  – Mixed short-term performance suggests higher tracking error and potential volatility.
  – Review risk metrics (rolling volatility, maximum drawdown) to ensure alignment with risk tolerance.

• Fee and Tax Considerations:
  – All returns are net of management fees.
  – Tax implications depend on individual investor profiles; calculate post-tax IRR accordingly.

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Conclusion

• For Long-Term Investors (≥ 3 Years):
  – IFRF’s track record since inception (Oct 2021) shows nearly 200 basis points of annualized outperformance versus NIFTY.
  – An attractive core holding for those seeking active alpha and willing to tolerate short-term tracking error.

• For Short-Term Investors (≤ 1 Year):
  – Periods of underperformance highlight that IFRF may lag when large-cap rallies dominate.
  – Use short-term pullbacks as potential entry points, provided you believe in IFRF’s long-term investment thesis.

• Overall Recommendation:
  – Blend IFRF with a low-cost NIFTY ETF for broad large-cap exposure, balancing active and passive strategies.
  – Maintain a minimum horizon of two years to allow IFRF’s process to unfold fully.

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Appendix: Data & Methodology

• Inception Date (IFRF): 20 October 2021

• IRR Calculation: Includes reinvested dividends and simulates NIFTY IRR using actual portfolio cashflows.

• Data Cutoff: 2 June 2025

• Fees & Taxes: Figures are net of management fees and pre-tax.

  
  

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  CS Pradhan: 9426536576

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Published on: 2 June 2025