Canara Robeco ELSS Tax Saver Direct Plan Payout of Income Dist cum Cap Wdrl INF760K01EJ2

Canara Robeco ELSS Tax Saver earns an Average Process Pillar rating.

The largest contributor to the rating is its team of two portfolio managers, which is enough to execute the process. Impressive risk-adjusted performance also bolsters the rating. This can be seen in the fund's 10-year alpha calculated relative to the category average, which suggests that the managers have shown skill in their allocation of risk. However, the process is limited by the parent firm's five-year risk-adjusted success ratio of 34%. 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 tends to hold larger, higher-growth companies than its average peer in the ELSS (Tax Savings) Morningstar Category. Analyzing additional factors, this strategy has continually had exposure to high-momentum stocks compared with Morningstar Category peers in the last few years. Momentum is based on the premise that stocks that have recently outperformed will continue to outperform, and those that have underperformed will stay behind. Different from its historical appetite, however, the strategy was less exposed to the Momentum factor compared with Morningstar Category peers in the most recent month. This strategy also has tilted in favor of high-quality stocks, those that have demonstrated low financial leverage and solid return on equity, during these years. High exposure to the quality factor means holding companies that are consistently profitable, growing, and have solid balance sheets. Compared with category peers, the strategy also had more exposure to the Quality factor in the most recent month. In addition, this strategy has shown a tendency to hold fewer stocks with high dividend or buyback yields over peers in recent years. Its preference for stocks with lower yields may well lead to a growthier portfolio. However, growth stocks court additional risks if their forecasts do not come to fruition and are often more volatile than companies with stable dividends. Nevertheless, the fund's Yield 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 has allocations in its top two sectors, consumer cyclical and industrials, that are similar to the category. The sectors with low exposure compared with category peers are financial services and healthcare, with financial services underweighting the average portfolio by 3.0 percentage points of assets and healthcare similar to the average. The portfolio is composed of 70 holdings and is about as top-heavy as the category average, with 38.3% of assets in the top 10 holdings. And finally, in terms of portfolio turnover, looking at year-over-year movements, 32% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.