Baroda BNP Paribas Large Cap Fund Regular Plan Growth INF251K01894

Baroda BNP Paribas Large Cap earns a Below Average Process Pillar rating.

The process benefits from its team of two portfolio managers, which is sufficient to execute the process. However, the rating is weakened by its parent firm's subpar risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 2.7 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 38% also holds the rating back. 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 Large-Cap category peers in terms of market-cap and style exposure. Examining additional factor exposure, this strategy has continually had exposure to high-momentum stocks compared with Morningstar Category peers in the last few 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, the strategy was more exposed to the Momentum factor compared with its Morningstar Category peers as well. The managers have also tended to underweight yield compared with peers during 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. Compared with category peers, however, the strategy had more exposure to the Yield factor in the most recent month. Additionally, the strategy has constantly maintained a defensive tilt, with exposure to high-quality stocks. High exposure to the quality factor means holding companies that are consistently profitable, growing, and have solid balance sheets. In this month, the strategy also had more exposure to the Quality 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 industrials by 3.0 percentage points in terms of assets compared with the category average, and its utilities allocation is similar to the category. The sectors with low exposure compared with category peers are financial services and technology, with financial services underweighting the average portfolio by 4.9 percentage points of assets and technology similar to the average. The portfolio is composed of 55 holdings and is diversified among those holdings. In its most recent portfolio, 44.3% of the portfolio's assets were concentrated in the top 10 fund holdings, compared to the category’s 51.8% average. And finally, in terms of portfolio turnover, looking at year-over-year movements, 1% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.