Bandhan ELSS Tax saver Fund - Direct Plan - Growth INF194K01Y29

Bandhan ELSS Tax saver Fund earns a Below Average Process Pillar rating.

The process is strengthened by the fund's strong long-term risk-adjusted performance. This can be seen in its five-year alpha calculated relative to the category average, which suggests that the managers have shown skill in their allocation of risk. However, the rating is weakened by its parent firm's inferior risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 2.2 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 holds the rating 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 relatively low 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 ELSS (Tax Savings) Morningstar Category. Analyzing additional factors, the managers have continually exhibited a willingness to take risks over the last few years, demonstrated by the portfolio's high volatility exposure. 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. Different from its historical appetite, however, the Volatility factor was in line with the Morningstar Category average in recent months. This strategy has also been exposed to liquid stocks during these years. More-liquid assets contribute to more-flexible exit strategies without price changes and tend to be a ballast during market selloffs. For example, if the portfolio faces successive redemptions in a short period of time, it will be less likely to experience a significant loss. Compared with category peers, however, the strategy had less Liquidity factor exposure in the latest month. Additionally, this strategy has demonstrated a preference for high-momentum stocks in these 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, however, the strategy had less Momentum factor exposure 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 consumer defensive by 3.4 percentage points in terms of assets compared with the category average, and its energy allocation is similar to the category. The sectors with low exposure compared with category peers are consumer cyclical and industrials, underweight the average by 4.4 and 3.4 percentage points of assets, respectively. The portfolio has 66 holdings and is about as top-heavy as the category average, with 40.0% of assets in the top 10 holdings. And in closing, in terms of portfolio turnover, looking at year-over-year movements, 30% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.