Shriram ELSS Tax Saver Fund Regular Payout of Income Distribution cum capital withdrawal option INF680P01141

Shriram ELSS Tax Saver Fund earns a Below Average Process Pillar rating.

The process benefits from the size of its portfolio management team. With three portfolio managers at the helm, the fund is reasonably well-resourced. However, the rating is limited by its parent firm's disappointing risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 1.8 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 10% also limits the process. 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 subpar success ratio suggests that the firm could do better across its fund lineup.

This strategy hews closely to the market cap and investment style of its ELSS (Tax Savings) category peers. 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. High exposure to the quality factor means holding companies that are consistently profitable, growing, and have solid balance sheets. In recent months, the strategy was more exposed to the Quality factor compared with its Morningstar Category peers as well. This strategy has also had more exposure to high-momentum stocks in recent years. Momentum is based on the premise that market outperformers will continue to outperform, and laggards will continue to lag. This means that managers are overweighting stocks currently on a winning streak. Compared with category peers, the strategy also had more exposure to the Momentum factor in the most recent month. In addition, the strategy had less exposure to high-yield stocks compared with Morningstar Category peers in recent months. This is demonstrated by the portfolio's low exposure to dividends or buybacks. While companies with high yields provide steady income payments, they may cut payouts if their earnings fall. 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 healthcare and technology relative to the category average by 19.3 and 6.3 percentage points, respectively. The sectors with low exposure compared with category peers are financial services and energy, underweight the average by 15.5 and 5.0 percentage points of assets, respectively. The portfolio is composed of 56 holdings and its assets are more dispersed than the typical peer in the category. In the most recent disclosure, 32.0% of the fund’s assets were concentrated in the top 10 fund holdings, as opposed to the category’s 39.8% average.