Taurus Flexi Cap Fund - Direct Plan-Reinvestment of Income Distribution cum capital withdrawal INF044D01BW5

Taurus Flexi Cap Fund earns a Low Process Pillar rating.

The most significant detractor from the rating is the fund's weak long-term risk-adjusted performance. This can be seen in its 10-year alpha calculated relative to the category average, 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 limits the process. 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 26% further holds the process 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 modest success ratio suggests that the firm could do better across its fund lineup.

This strategy leans toward smaller, more undervalued companies compared with its average peer in the Flexi Cap Morningstar Category. Examining additional factor exposure, this strategy has consistently had a defensive tilt owing to its exposure to high-quality stocks over the past few years. Though it may trail peers during an economic boom, this orientation contributes to helping it weather periods of economic stress better. In recent months, the strategy was more exposed to the Quality factor compared with its Morningstar Category peers as well. This strategy also has had an overweight bias to the volatility factor over these years, meaning it has owned companies that have a higher historical standard deviation of returns. This orientation tends to pay off most prominently when markets are hot. In the most recent month, however, the fund's Volatility exposure was in line with the Morningstar Category average. In addition, the strategy had more exposure to high-yield stocks compared with Morningstar Category peers in recent months. High-yield stocks tend to be connected to more mature companies earning enough cash to return some to shareholders. At times, however, extreme market pressure can force them to cut their dividends, which hurts stock performance. 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 consumer defensive and technology relative to the category average by 3.6 and 3.0 percentage points, respectively. The sectors with low exposure compared with category peers are basic materials and industrials, underweight the average by 6.0 and 2.7 percentage points of assets, respectively. The strategy owns 57 securities and is relatively top-heavy. Of the strategy's assets, 43.5% are concentrated within the top 10 holdings, as opposed to the typical peer's 39.5%. And finally, in terms of portfolio turnover, on a year-over-year basis, 133% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.