Shriram ELSS Tax Saver Fund Regular Payout of Income Distribution cum capital withdrawal option INF680P01141

Shriram ELSS Tax Saver Fund earns a Below Average Process Pillar rating.

The process benefits from the size of its portfolio management team. With three portfolio managers at the helm, the fund is reasonably well-resourced. 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 2.0 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 10% also limits the process. 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 is similar to its ELSS (Tax Savings) category peers in terms of market-cap and style exposure. 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. Such holdings could cause it to trail peers during economic booms, but help it better endure busts. In recent months, the strategy was more exposed to the Quality factor compared with its Morningstar Category peers as well. This strategy has also had more exposure to high-momentum stocks 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. Furthermore, the strategy had more exposure to high-volatility stocks compared with Morningstar Category peers in recent months. This orientation tends to pay off most prominently when markets are hot. 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 technology and consumer cyclical relative to the category average by 6.6 and 4.6 percentage points, respectively. The sectors with low exposure compared with category peers are financial services and energy, underweight the average by 8.5 and 5.0 percentage points of assets, respectively. The portfolio is positioned across 67 holdings and its assets are more dispersed than peers in the category. In particular, 32.0% of the portfolio's assets are concentrated in the top 10 fund holdings, as opposed to the category average's 39.6%.