Quant Infrastructure Fund Payout of Income Distribution cum capital withdrawal Option Direct Plan INF966L01705

Quant Infrastructure Fund earns an Above Average Process Pillar rating.

The most substantial contributor to the rating is its parent firm's excellent 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 bolsters the rating. The measure indicates the percentage of a firm's funds that have outperformed 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 leans toward larger, more value-oriented companies than its average peer in the Equity - Infrastructure Morningstar Category. Looking at additional factor exposure, the fund has held stocks with higher trading volumes compared to Morningstar Category Peers in the past few years. More-liquid assets contribute to more-flexible exit strategies without price changes and tend to be a ballast during market selloffs. For example, if the portfolio faces successive redemptions in a short period of time, it will be less likely to experience a significant loss. In recent months, the strategy was more exposed to the Liquidity factor compared with its Morningstar Category peers as well. This strategy has also exhibited a tilt toward high-volatility stocks over these years, meaning it has invested in companies that have a higher historical standard deviation of returns. Such stocks tend to rise faster and fall harder than the broad market. High-volatility exposure contributes to stronger performance during bull markets, but often at the cost of losing more during downturns. Compared with category peers, the strategy also had more exposure to the Volatility 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 consumer defensive and utilities relative to the category average by 8.5 and 8.3 percentage points, respectively. The sectors with low exposure compared with category peers are industrials and communication services, underweight the average by 14.5 and 5.6 percentage points of assets, respectively. The portfolio is composed of 30 holdings and is relatively concentrated. Specifically, 71.1% of the fund’s assets are housed within the top 10 holdings, as opposed to the typical peer's 29.1%. And finally, in terms of portfolio turnover, looking at year-over-year movements, 79% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.