Bandhan Large Cap Fund Payout of Income Distribution cum cptl Wdrl opt INF194K01490

Bandhan Large Cap earns a Below Average Process Pillar rating.

The process is strengthened by low expenses across its parent firm's funds, whose fees rank in their respective category's middle quintile on average. The pattern of low expenses at the firm indicates that it is focused on delivering strong results for investors. However, the rating is held back by its parent firm's disappointing risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 2.2 stars. A lower star rating suggests that the firm has struggled to outperform on a risk-adjusted basis. The parent firm's five-year risk-adjusted success ratio of 26% also holds the process back. The measure indicates the percentage of a firm's funds that have beat their respective category's median return for the period. The parent's subpar success ratio suggests that the firm could do better across its fund lineup.

This strategy leans toward smaller, higher-growth companies compared with its average peer in the Large-Cap Morningstar Category. Analyzing additional factors, this strategy has constantly downplayed yield, with its portfolio holding fewer companies with high dividend or buyback yields compared with Morningstar Category peers in recent years. Returning capital to shareholders often is not the highest priority of such businesses. The shares of such companies can deliver strong returns if they fulfill their growth projections, but they also carry more risk. In the latest month, the strategy was also less exposed to the Yield factor compared with Morningstar Category peers. This strategy has also demonstrated more exposure to high-momentum stocks over peers in recent years. Momentum strategies wager that market outperformers will continue to outperform, and laggards will continue to lag. Higher exposure to the former could mean the managers are overweighting stocks on winning streaks. Compared with category peers, the strategy also had more exposure to the Momentum factor in the most recent month. In addition, this strategy has favored high-quality stocks compared to peers over the years, which could be a good option for downside risk protection. High exposure to the quality factor means holding companies that are consistently profitable, growing, and have solid balance sheets. In this month, the strategy also had more exposure to the Quality factor over its peers. More information on a fund and its respective category's factor exposure can be found in the Factor Profile module within the Portfolio section.

The portfolio has allocations in its top two sectors, healthcare and technology, that are similar to the category. The sectors with low exposure compared with category peers are industrials and financial services, with industrials underweighting the average portfolio by 2.8 percentage points of assets and financial services similar to the average. The portfolio is composed of 56 holdings and is similarly diversified as peers, with 51.1% of portfolio assets concentrated within the top 10 holdings. And in closing, in terms of portfolio turnover, looking at year-over-year movements, 130% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.