Tata Equity P/E Fund Direct Plan Growth INF277K01ND1

Tata Equity P/ E earns an Average Process Pillar rating.

The leading factor in the rating is the parent firm's five-year risk-adjusted success ratio of 63%. The measure indicates the percentage of a firm's funds that have outperformed their respective category's median return for the period. The firm's five-year retention rate of 81% also underpins the process. However, the process is limited by its parent firm's disappointing risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 2.9 stars. A lower star rating suggests that the firm has struggled to outperform on a risk-adjusted basis.

This strategy hews closely to the market cap and investment style of its Value category peers. Looking at additional factor exposure, this strategy has consistently had a defensive tilt owing to its exposure to high-quality stocks over the past few years. Though it may trail peers during an economic boom, this orientation contributes to helping it weather periods of economic stress better. In recent months, the strategy was more exposed to the Quality factor compared with its Morningstar Category peers as well. The managers have also tended to overweight yield during recent years, shown by the portfolio's high exposure to dividends or buybacks. High-yield stocks tend to be connected to more mature companies earning enough cash to return some to shareholders. At times, however, extreme market pressure can force them to cut their dividends, which hurts stock performance. Compared with category peers, the strategy also had more exposure to the Yield factor in the most recent month. Additionally, this strategy has demonstrated a preference for 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 this month, the strategy also had more exposure to the Momentum 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 is overweight in financial services and utilities relative to the category average by 6.4 and 2.7 percentage points, respectively. The sectors with low exposure compared with category peers are industrials and basic materials, underweight the average by 6.2 and 3.6 percentage points of assets, respectively. The strategy owns 40 securities and is quite concentrated. In particular, 43.9% of the strategy's assets are housed within the top 10 holdings, versus the category average of 40.4%. And in closing, in terms of portfolio turnover, looking at year-over-year movements, 60% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.