Quant Active Fund Growth Option Direct Plan INF966L01614

Quant Active Fund earns an Above Average Process Pillar rating.

The primary contributor to the rating is its parent firm's impressive long-term risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 4.8 stars. The parent firm's five-year risk-adjusted success ratio of 100% also influences the rating. The measure indicates the percentage of a firm's funds that have beat their respective category's median return for the period. Their commendable success ratio suggests that the firm does well for investors and that this fund may benefit from that. However, the process is limited by the parent firm's five-year retention rate of 69%, which raises concerns about long-term strategic consistency..

This strategy skews toward smaller, more value-oriented companies than its average peer in the Multi-Cap Morningstar Category. Analyzing additional factors, this strategy has consistently overweighted the volatility factor compared with Morningstar Category peers over the last few years, meaning it invests in stocks with a history of the higher standard deviation of returns. This is a higher-risk, higher-reward approach. In recent months, the strategy was more exposed to the Volatility factor compared with its Morningstar Category peers as well. This strategy has also been exposed to liquid stocks during these years. This gives the managers more flexibility during bear markets to sell without adversely affecting prices. Compared with category peers, the strategy also had more exposure to the Liquidity factor in the most recent month. Additionally, this strategy has demonstrated a preference for high-momentum stocks in these 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. 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 energy and consumer defensive relative to the category average by 14.4 and 8.5 percentage points, respectively. The sectors with low exposure compared with category peers are financial services and technology, underweight the average by 12.0 and 8.2 percentage points of assets, respectively. The portfolio is composed of 57 holdings and is relatively top-heavy. Of the strategy's assets, 43.4% are concentrated within the top 10 holdings, compared to the typical peer's 29.3%. And finally, in terms of portfolio turnover, on a year-over-year basis, 76% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.