Taurus ELSS Tax Saver Fund-Payout of Income Distribution cum capital withdrawal option INF044D01997

Taurus ELSS Tax Saver Fund earns a Low Process Pillar rating.

The main driver of the rating is its parent firm's disappointing risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 2.4 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 26% also detracts from 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 relatively low success ratio suggests that the firm could do better across its fund lineup. High costs across its parent firm's funds, whose fees, on average, rank in the second-costliest quintile of their respective category, hold the process back as well. While this fund's costs are most relevant to investors, the pattern at the broader firm suggests it could do more to keep costs low.

This strategy, over time, has consistently held more undervalued companies, compared with peers in the ELSS (Tax Savings) Morningstar Category. But in terms of market capitalization, it is on par with peers. Analyzing additional factors, this strategy has consistently had a defensive tilt owing to its exposure to high-quality stocks over the past few years. This means the fund holds consistently profitable, growing companies with solid balance sheets that may help it endure downturns better than Morningstar Category peers. In recent months, the strategy was more exposed to the Quality factor compared with its Morningstar Category peers as well. This strategy has also displayed a tendency to hold more companies with high dividend or buyback yields than peers over recent years. Stocks with high yields can be more stable, mature companies, but at times extreme market pressure or fundamental deterioration may prompt them to cut their dividends, which tends to hurt stock performance. Compared with category peers, the strategy also had more exposure to the Yield factor in the most recent month. Given the high trading volume of holdings, this fund also holds highly liquid assets. Such stocks may have less potential upside than illiquid holdings, but they are easier to trade during market downturns. Nevertheless, the fund's Liquidity exposure was in line with peers in the latest month. 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 technology and financial services relative to the category average by 12.9 and 6.9 percentage points, respectively. The sectors with low exposure compared with category peers are consumer cyclical and basic materials, underweight the average by 9.0 and 3.9 percentage points of assets, respectively. The portfolio is positioned across 33 holdings and is quite concentrated. In particular, 58.2% of the strategy's assets are housed within the top 10 holdings, as opposed to the category’s 39.8% average. And finally, in terms of portfolio turnover, looking at year-over-year movements, 58% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.