Bank of India Manufacturing & Infra Quarterly Reinvestment of Income Dist cum Cap Wdrl INF761K01223

Bank of India Manufacturing and Infras earns an Above Average Process Pillar rating.

The main driver of the rating is the fund's strong long-term risk-adjusted performance. This can be seen in its five-year alpha calculated relative to the category index, which suggests that the managers have shown skill in their allocation of risk. The parent firm's five-year risk-adjusted success ratio of 67% also strengthens the process. The measure indicates the percentage of a firm's funds that have outperformed their respective category's median return for the period. Their commendable success ratio suggests that the firm does well for investors and that this fund may benefit from that. However, the process is limited by its parent firm's disappointing 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.

This strategy tends to hold smaller, higher-growth companies compared with its average peer in the Equity - Infrastructure Morningstar Category. Analyzing additional factors, this strategy has consistently had exposure to high-momentum stocks compared with Morningstar Category peers over the past 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. This strategy also has tilted in favor of high-quality stocks, those that have demonstrated low financial leverage and solid return on equity, during these years. This means the fund holds consistently profitable, growing companies with solid balance sheets that may help it weather downturns better than Morningstar Category peers. Compared with category peers, the strategy also had more exposure to the Quality factor in the most recent month. In addition, this strategy has exhibited a tilt toward higher-volatility stocks in these years, meaning companies that have a higher historical standard deviation of returns compared with peers. Such stocks tend to rise faster and fall harder than the broad market. High-volatility exposure contributes to stronger performance during bull markets, but often at the cost of losing more during downturns. In this month, the strategy also had more exposure to the Volatility 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 basic materials and consumer cyclical relative to the category average by 9.0 and 8.3 percentage points, respectively. The sectors with low exposure compared with category peers are industrials and financial services, underweight the average by 12.3 and 9.4 percentage points of assets, respectively. The strategy owns 66 securities and is relatively top-heavy. Of the strategy's assets, 35.3% are concentrated within the top 10 holdings, compared to the typical peer's 27.6%. And in closing, in terms of portfolio turnover, on a year-over-year basis, 85% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.