Aditya Birla Sun Life Banking & Financial Services Regular Reinvestment Inc Dist cum Cap Wdrl INF209K012W5

Aditya BSL Banking& Fin Srvcs earns an Average Process Pillar rating.

The predominant contributor to the rating is the fund's impressive long-term risk-adjusted performance. This can be seen in its ten-year alpha calculated relative to the category average, which suggests that the managers have shown skill in their allocation of risk. The size of the portfolio management team also strengthens the process. With two portfolio managers, the fund is reasonably well-resourced. However, the process is limited by its parent firm's risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 3.0 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. Analyzing additional factors, this strategy has exhibited a tilt toward high-volatility stocks or the shares of companies with histories of the higher standard deviation of returns, compared with Morningstar Category peers in the last few years. This orientation tends to pay off most prominently when markets are hot. Different from its historical appetite, however, the Volatility factor was in line with the Morningstar Category average in recent months. This strategy has also demonstrated more exposure to high-momentum stocks over peers in recent years. Momentum is based on the premise that market outperformers will continue to outperform, and laggards will continue to lag. This means that managers are overweighting stocks currently on a winning streak. Compared with category peers, the strategy also had more exposure to the Momentum factor in the most recent month. During the last few years, this strategy has also tilted in favor of high-quality stocks, those that have demonstrated low financial leverage and solid return on equity. High exposure to the quality factor means holding companies that are consistently profitable, growing, and have solid balance sheets. Nevertheless, the fund's Quality 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, 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 portfolio has 42 holdings and is similarly diversified as peers, with 71.9% of portfolio assets concentrated within the top 10 holdings. And in closing, in terms of portfolio turnover, looking at year-over-year movements, 44% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.