Sundaram Multi Cap Fund Direct Plan -Half Yearly Reinvestment of Income Dis cum Cap Wdrl INF173K01FO5

Sundaram Multi Cap earns a Below Average Process Pillar rating.

The process is strengthened by the fund's excellent long-term risk-adjusted performance. This can be seen in its five-year alpha calculated relative to the category index, 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 2.5 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 36% also holds the rating back. 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 subpar success ratio suggests that the firm could do better across its fund lineup.

This strategy skews toward smaller, higher-growth companies than its average peer in the Multi-Cap Morningstar Category. Analyzing additional factors, this strategy has constantly downplayed yield, with its portfolio holding fewer companies with high dividend or buyback yields compared with Morningstar Category peers in recent years. 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. Different from its historical appetite, however, the Yield factor was in line with the Morningstar Category average in recent months. This strategy also has had a position favoring high-quality stocks in recent years, which could contribute to higher downside risk protection. Such holdings could cause it to trail peers during economic booms, but help it better endure busts. Compared with category peers, the strategy also had more exposure to the Quality factor in the most recent month. In addition, this strategy has taken on exposure to high-momentum stocks in these years. Momentum approaches bet that rising stocks will continue to rise and that lagging stocks will continue to lag. 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 industrials and energy relative to the category average by 6.7 and 2.5 percentage points, respectively. The sectors with low exposure compared with category peers are consumer cyclical and basic materials; however, the allocations are similar to the category. The portfolio is positioned across 73 holdings and is quite concentrated. More concretely, 33.4% of the portfolio's assets are housed within the top 10 holdings, versus the typical peer's 29.3%. And in closing, in terms of portfolio turnover, looking at year-over-year movements, 73% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.