Sundaram Large Cap Fund Dir Transfer of Income Distribution cum capital withdrawal plan

Sundaram Large Cap Fund earns a Below Average Process Pillar rating.

The process is strengthened by the experience of the management team, which averages 12 years at this fund. However, the rating is limited by the parent firm's five-year risk-adjusted success ratio of 36%. 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 subpar success ratio suggests that the firm could do better across its fund lineup. The parent firm's disappointing risk-adjusted performance, as shown by its average 10-year Morningstar Rating of 2.5 stars, also weakens the process. A lower star rating suggests that the firm has struggled to outperform on a risk-adjusted basis.

This strategy has more exposure to the Growth factor than the Large-Cap Morningstar Category average. But in terms of size exposure, it is similar to the average. Analyzing additional factors, this strategy has constantly downplayed yield, with its portfolio holding fewer companies with high dividend or buyback yields compared with Morningstar Category peers in recent years. Returning capital to shareholders often is not the highest priority of such businesses. The shares of such companies can deliver strong returns if they fulfill their growth projections, but they also carry more risk. In the latest month, the strategy was also less exposed to the Yield factor compared with Morningstar Category peers. This strategy has also favored low-quality stocks. This means the fund avoids holding companies that are consistently profitable, growing, and have solid balance sheets. Lacking this ballast, the fund's prospects could rest on its ability to surpass peers during economic booms. Similarly, in recent months, the strategy also had less exposure to the Quality factor than peers. Moreover, this strategy has been underweighting momentum stocks during these years. Momentum strategies typically bet that stocks that have recently outperformed will continue to do so, and those that have recently underperformed will keep lagging. Avoiding the former and buying the latter could indicate that managers are averse to chasing momentum. In recent months, the strategy also had less Momentum factor exposure than 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 healthcare relative to the category average by 3.1 and 2.6 percentage points, respectively. The sectors with low exposure compared with category peers are energy and consumer defensive; however, the allocations are similar to the category. The portfolio is composed of 36 holdings and is relatively top-heavy. Of the strategy's assets, 55.4% are concentrated within the top 10 holdings, as opposed to the typical peer's 51.8%. And in closing, in terms of portfolio turnover, on a year-over-year basis, 16% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.