Taurus Discovery (Midcap) Fund - Direct Plan-Payout of Income Dist cum cap wdrl INF044D01CB7

Taurus Discovery(Midcap) earns a Low Process Pillar rating.

The main detractor from the rating is the fund's unimpressive long-term risk-adjusted performance. This can be seen in its five-year alpha calculated relative to the category index, which suggests that the process has struggled over that period. The parent firm's subpar risk-adjusted performance, as shown by its average 10-year Morningstar Rating of 2.4 stars, also holds the rating back. 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 31% further holds the process back. 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 relatively low success ratio suggests that the firm could do better across its fund lineup.

This strategy prefers smaller market-cap firms compared with the average fund in its peer group, the Mid-Cap Morningstar Category. But in terms of style (value/growth) exposure, it does not have much of a bias and resembles the category's typical portfolio. Analyzing additional factors, this strategy has exhibited a tilt toward high-volatility stocks or the shares of companies with histories of the higher standard deviation of returns, compared with Morningstar Category peers in the last few years. Such exposure tends to pay off when markets are hot and to be costly when they are not. Different from its historical appetite, however, the strategy was less exposed to the Volatility factor compared with Morningstar Category peers in the most recent month. Given the low trading volume of holdings, this strategy also has higher liquidity risk exposure in these years, consistently over its peers. Less-liquid stocks might offer strong returns to compensate for their risks, but they can be harder and more expensive to trade in bear markets. Similarly, in recent months, the strategy also had less exposure to the Liquidity factor than peers. Additionally, the strategy had less exposure to high-quality stocks compared with Morningstar Category peers in recent months. Such positions do not tend to provide much ballast for a portfolio. 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 communication services relative to the category average by 6.5 and 5.8 percentage points, respectively. The sectors with low exposure compared with category peers are consumer defensive and technology, underweight the average by 3.1 and 3.1 percentage points of assets, respectively. The portfolio is composed of 51 holdings and is relatively top-heavy. Of the strategy's assets, 36.1% are concentrated within the top 10 holdings, as opposed to the category’s 23.2% average. And finally, in terms of portfolio turnover, on a year-over-year basis, 113% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.