Tata Banking & Financial Services Fund Direct Payout of Income Distribution cum Capital Wtdrwl INF277K01Z28

Tata Banking& Financial Services earns an Average Process Pillar rating.

The leading factor in the rating is the parent firm's five-year risk-adjusted success ratio of 63%. The measure indicates the percentage of a firm's funds that have beat their respective category's median return for the period. Respectable risk-adjusted performance also influences the rating. This can be seen in the fund's five-year alpha calculated relative to the category index, which suggests that the managers have shown skill in their allocation of risk. However, the process is limited by its parent firm's inferior risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 2.9 stars. A lower star rating suggests that the firm has struggled to outperform on a risk-adjusted basis.

This strategy targets smaller plays than its peers’ average in the Sector - Financial Services Morningstar Category. But in terms of style (value/growth) exposure, it is similar. 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. This means the fund holds consistently profitable, growing companies with solid balance sheets that may help it weather downturns better than Morningstar Category peers. Different from its historical appetite, however, the Quality factor was in line with the Morningstar Category average in recent months. The strategy also had less exposure to high-yield stocks compared with Morningstar Category peers in recent months. Returning capital to shareholders often is not the highest priority of such businesses. The shares of such companies can deliver strong returns if they fulfill their growth projections, but they also carry more risk. Furthermore, the strategy had similar exposure to high-volatility 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 has allocations in its top two sectors, technology and consumer cyclical, that are similar to the category. The sectors with low exposure compared with category peers are financial services and healthcare; however, the allocations are similar to the category. The strategy owns 36 securities and its assets are more dispersed than peers in the category. In particular, 67.5% of the portfolio's assets are concentrated in the top 10 fund holdings, compared to the category average's 73.6%. And in closing, in terms of portfolio turnover, on a year-over-year basis, 21% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.