Quant ELSS Tax Saver Growth INF966L01135

Quant ELSS Tax Saver earns a High 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 bolsters 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 compelling success ratio suggests that the firm does well for investors and that this fund may benefit from that. Respectable risk-adjusted performance also strengthens the process, as shown by the fund's five-year alpha calculated relative to the category index, which suggests that the managers have shown skill in their allocation of risk.

This strategy tends to hold smaller, more undervalued companies than its average peer in the ELSS (Tax Savings) Morningstar Category. Looking at additional factor exposure, 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 contributes to 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 demonstrated more exposure to high-momentum stocks over peers in recent years. Momentum is based on the premise that stocks that have recently outperformed will continue to outperform, and those that have underperformed will stay behind. Compared with category peers, however, the strategy had less Momentum factor exposure in the latest month. Given the high trading volume of holdings, this fund also tilts toward liquid assets. More-liquid assets are easier to buy and sell without adversely moving their prices and tend to provide some ballast during market selloffs. They also are easier to sell to meet redemptions if a host of investors decide to leave the fund in a short period of time. Nevertheless, the fund's Liquidity exposure was in line with peers in the latest month. 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 utilities and energy relative to the category average by 13.3 and 11.3 percentage points, respectively. The sectors with low exposure compared with category peers are financial services and technology, underweight the average by 14.5 and 8.5 percentage points of assets, respectively. The strategy owns 38 securities and is quite concentrated. More concretely, 59.8% of the fund’s assets are housed within the top 10 holdings, compared to the category average of 39.6%. And finally, in terms of portfolio turnover, on a year-over-year basis, 157% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.