Bandhan ELSS Tax saver Fund Regular Plan Payout of Income Distribution cum cptl Wdrl opt INF194K01300

Bandhan ELSS Tax saver Fund earns a Below Average Process Pillar rating.

The process is bolstered by the fund's strong long-term risk-adjusted performance. This can be seen in its five-year alpha calculated relative to the category average, which suggests that the managers have shown skill in their allocation of risk. However, the rating is limited 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 limits the process. The measure indicates the percentage of a firm's funds that have outperformed their respective category's median return for the period. The parent's relatively low success ratio suggests that the firm could do better across its fund lineup.

This strategy skews toward smaller, more undervalued companies than its average peer in the ELSS (Tax Savings) Morningstar Category. Looking at additional factor exposure, this strategy has exhibited a tilt toward high-volatility stocks or the shares of companies with histories of the higher standard deviation of returns, compared with Morningstar Category peers in the last few years. Such exposure tends to pay off when markets are hot and to be costly when they are not. Different from its historical appetite, however, the Volatility factor was in line with the Morningstar Category average in recent months. Given the high trading volume of holdings, this strategy has been exposed to liquid assets during these years. Such stocks may have less potential upside than illiquid holdings, but they are easier to trade during market downturns. Compared with category peers, however, the strategy had less Liquidity factor exposure in the latest month. In addition, this strategy has taken on exposure to high-momentum stocks in these years. Momentum is based on the premise that market outperformers will continue to outperform, and laggards will continue to lag. This means that managers are overweighting stocks currently on a winning streak. In recent months, however, the strategy had less Momentum factor exposure 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 is overweight in consumer defensive by 3.4 percentage points in terms of assets compared with the category average, and its energy allocation is similar to the category. The sectors with low exposure compared with category peers are consumer cyclical and industrials, underweight the average by 4.4 and 3.4 percentage points of assets, respectively. The portfolio has 66 holdings and is about as top-heavy as the category average, with 40.0% of assets in the top 10 holdings. And finally, in terms of portfolio turnover, looking at year-over-year movements, 30% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.