Taurus Largecap Equity Fund - Payout of Income Distribution cum capital wdrl INF044D01740

Taurus Largecap Equity earns a Low Process Pillar rating.

The predominant detractor from the rating is the fund's mediocre long-term risk-adjusted performance. This can be seen in its five-year alpha calculated relative to the category index, which suggests that the process has struggled over that period. The parent firm's inferior risk-adjusted performance, as shown by its average 10-year Morningstar Rating of 2.4 stars, also limits the process. 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 31% further limits the process. 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 prefers smaller market-cap companies compared with the average fund in its peer group, the Large-Cap Morningstar Category. But in terms of investment style, it is on par with peers. Looking at additional factor exposure, 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 market outperformers will continue to outperform, and laggards will continue to lag. This means that managers are overweighting stocks currently on a winning streak. In recent months, the strategy was more exposed to the Momentum factor compared with its Morningstar Category peers as well. This strategy also has had a defensive tilt, with exposure to higher-quality stocks compared with peers in recent years. This means the fund holds consistently profitable, growing companies with solid balance sheets that may help it endure downturns better than Morningstar Category peers. Compared with category peers, however, the strategy had less Quality factor exposure in the latest month. Given the high trading volume of holdings, this fund also tilts toward liquid assets. More-liquid assets are easier to buy and sell without adversely moving their prices and tend to provide some ballast during market selloffs. They also are easier to sell to meet redemptions if a host of investors decide to leave the fund in a short period of time. In this month, the strategy also had more exposure to the Liquidity factor 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 cyclical and energy relative to the category average by 7.0 and 6.5 percentage points, respectively. The sectors with low exposure compared with category peers are basic materials and industrials, underweight the average by 5.7 and 4.3 percentage points of assets, respectively. The portfolio is composed of 36 holdings and its assets are more dispersed than peers in the category. In particular, 49.0% of the portfolio's assets are concentrated in the top 10 fund holdings, compared to the category’s 51.8% average. And in closing, in terms of portfolio turnover, looking at year-over-year movements, 133% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.