Motilal S&P 500 Index Fund: 1 month on WITH DATA

[onagooddaydevout]

tl;dr sharing a spreadsheet I made comparing returns of Motilal Oswal S&P500 index fund and S&P500 total returns index since the fund's launch.

A recent post on this sub comparing the returns of S&P500 total returns index and Motilal Oswal S&P500 index fund got some traction. The numbers looked wildly inaccurate at first glance because I'd been keeping an eye on the fund since launch. Claiming difference in returns was >5% ticked me off enough to crunch the numbers.

Here is a spreadsheet I just made comparing the returns of Motilal Oswal S&P500 index fund and S&P500 total returns index since the fund's launch.

I thought I'll share it lest anyone assume that the tracking error is much more than what it really is. Do let me know if any error has crept in. The usd-inr values used might be off by a day (I don't know which day's rate to pick - the current day's or previous day's. I've gone with the latter)

Sources (historical data from yahoo fin and amfi) are cited in the sheet.

 

[ranran19]

@onagooddaydevout Good work.

(In my mind, it is too early for this analysis though!)

One suggestion. I suspect that for column spx_inr_perc_change, 0% should not be for 28th Apr, but for 27th Apr. (You've taken the cell for 28th Apr as reference and thus measured % change from there. However, the NAV for 28th Apr is built by the SP500TR & USD-INR values of 27th Apr)

This would ensure that laypeople - who would invariably compare the two from the same row - would get the right impression.

 

[onagooddaydevout]

@ranran19 Thank you.
I agree that it is too early. I thought it is best to put it out there nonetheless since I saw a lot of unnecessary confusion in the other thread.

Sp500tr(usd) against date 28th Apr is actually the index close on 27th Apr. Same for usd-inr. This can be seen in the lookup formula.
So Sp500tr(inr) against date 28th Apr is the product of Sp500tr(usd) of 27th Apr and usd-inr of 27th Apr.

You can see that in the lookup for those 2 columns, the date by which lookup is done is date in row-1 for every day (except mondays t-3 for mondays)
So spx_inr_perc_change is in fact 0% for 27th. That works right?

 

[ranran19]

@onagooddaydevout Oh, ok, then this makes complete sense. Thank you.

 

[yuliza]

@onagooddaydevout Thank you crunching the numbers for this.

Btw, you can actually automate this by using google sheet formula.

 

[onagooddaydevout]

@yuliza Thanks. I feel it is as automated as it gets. Only manual work done is copy-paste of historical data in sheet2 and some formatting.

If you open the sheet on a browser on pc (or sheets app on mobile) you can see the formulae.

Now, I could make it a streaming chart with apps script but i don't find the need to.
In my personal opinion, as long as returns show a high positive correlation there's no need to obsess about a few basis points difference in returns since I don't really have another option to hold s&p500. But that's just me.

 

[yuliza]

@onagooddaydevout I meant the data pull part.

I can't open my PC rn but I copied your sheet on the app and was able to get the data. The only part left is to connect the AMFI data to your lookup sheet.

E: also, do you know why AMFI has 2 rows for each date?

 

[onagooddaydevout]

@yuliza

E: also, do you know why AMFI has 2 rows for each date?

No. I removed duplicates because I found it really annoying xD. That could be automated with apps script if necessary.

 

[yuliza]

@onagooddaydevout

Hey, I updated the data pull to use AMFI and Google Finance without any intervention. Can you check if the link is working?

 

[onagooddaydevout]

@yuliza Ah, sorry , my bad. Looks neat with the importdata!

I see that you have used "spy" which is "SPDR S&P 500 ETF Trust" on Google Finance. If it reflects the sp500tri that'll do.

I wanted to use the sp500TRI which is the index it tracks. Unfortunately I couldn't get the data for the same using its google finance ticker - INDEXSP: SP500TR. So I went for yahoo finance.

 

[montse811]

@onagooddaydevout

Claiming difference in returns was >5%

The original post actually claimed that the MF is short by 55%. Your spreadsheet shows it's short by around 12%.
12% is still a big difference. Hope it's because of some initial hiccups.

Is it possible to check if the current holdings of the fund is in line with the SP500 Index?

 

[onagooddaydevout]

@montse811 Firstly, I just started reading about investing 4 months ago and actually investing 3 months ago(lucky me!) So take my responses with a few tablespoons of salt.

I do not know if the current holdings are publicly available except in the AMC fact sheets. I'd tried to reverse engineer a freefincal workbook that gives overlap between mutual funds. Quickly reached a dead-end with that at portal.amfi which asked for a username and password.

I know the data is available because there are multiple products that check overlap between holdings of funds. I don't know if it is publicly available.

Edit: Spoke too soon. The MF holdings are available here https://www.motilaloswalmf.com/downloads/mutual-fund/Month-End-Portfolio
I couldn't find the april end sp500 components chart anywhere to compare though. Will update if I find it.

 

[resjudicata]

@onagooddaydevout I don't know about it. I would just say you're doing work spreading the information and awareness.

 

[khaellis]

@onagooddaydevout Thanks!

Interesting work

Updated the sheet and link is: https://docs.google.com/spreadsheets/d/1dc6bwE-soTh3srKkRQaoHJVP7KyIXQGSIoo7_Z0K-Ik/edit?usp=sharing

1) taking a percentage of a percentage is not a good idea

There is tracking error. Maximum was 2.15% minimum -0.52%. Average and median around 0.5% which I think is acceptable if it stays in the range in an year or so

2) Interestingly INR appreciated in this period => INR returns were lower than USD returns

INR depreciation will help investors in India

3) Bid ask spread on both currency and stocks will impact MF especially when it has low AUM

As suggested lets see for 3-4 months and then talk about tracking error. If tracking error is great, other funds will be better

 

[pif15]

@onagooddaydevout Does this fund provide dollar to rupee appreciation? Or does it simply track the sp500 without hedging against rupee deflation?