Baroda BNP Paribas Mid Cap Fund Regular Plan Growth INF251K01AW3

Baroda BNP Paribas Mid Cap earns a Below Average Process Pillar rating.

The process is bolstered by its team of two portfolio managers, which is enough to execute the process. However, the rating is held back by its parent firm's inferior 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. Unremarkable risk-adjusted performance also detracts from the process. This can be seen in the fund's five-year alpha calculated relative to the category index, which suggests that the process has struggled over that period.

This strategy targets deeper value plays than its peers’ average in the Mid-Cap Morningstar Category. But in terms of size exposure, it does not have much of a bias and resembles the typical portfolio. Analyzing additional factors, this strategy has continually had exposure to high-momentum stocks compared with Morningstar Category peers in the last 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. Different from its historical appetite, however, the Momentum factor was in line with the Morningstar Category average in recent months. The managers have also tended to overweight yield during recent years, shown by the portfolio's high exposure to dividends or buybacks. High-yield stocks tend to be associated with more mature, profitable businesses that can grow as well as provide a stream of income. Such stocks could suffer, however, if setbacks force them to cut their dividends. Compared with category peers, the strategy also had more exposure to the Yield factor in the most recent month. Additionally, the strategy had similar exposure to high-quality stocks compared with Morningstar Category peers in recent months. 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 consumer defensive relative to the category average by 3.4 and 3.1 percentage points, respectively. The sectors with low exposure compared with category peers are technology and consumer cyclical, underweight the average by 4.5 and 3.4 percentage points of assets, respectively. The portfolio is composed of 68 holdings and is similarly diversified as peers, with 24.6% of portfolio assets concentrated within the top 10 holdings. And finally, in terms of portfolio turnover, looking at year-over-year movements, 1% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.