Taurus ELSS Tax Saver Fund-Direct Plan-Growth Option INF044D01CG6

Taurus ELSS Tax Saver Fund earns a Low Process Pillar rating.

The most significant detractor from the rating is its parent firm's inferior risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 2.4 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 0% also detracts from 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 relatively low success ratio suggests that the firm could do better across its fund lineup. High costs across its parent firm's funds, whose fees, on average, rank in the highest-cost quintile of their respective category, detract from the rating as well. While this fund's costs are most relevant to investors, the pattern at the broader firm suggests it could do more to keep costs low.

This strategy leans toward smaller, deeper value companies than its average peer in the ELSS (Tax Savings) Morningstar Category. Looking at additional factor exposure, this strategy has consistently favored high-quality stocks, including those with low financial leverage and solid returns on equity, compared with Morningstar Category peers during recent years. Such holdings could cause it to trail peers during economic booms, but help it better withstand busts. In recent months, the strategy was more exposed to the Quality factor compared with its Morningstar Category peers as well. The managers have also tended to overweight yield during recent years, shown by the portfolio's high exposure to dividends or buybacks. High-yield stocks tend to be connected to more mature companies earning enough cash to return some to shareholders. At times, however, extreme market pressure can force them to cut their dividends, which hurts stock performance. Compared with category peers, the strategy also had more exposure to the Yield factor in the most recent month. In addition, this strategy has exhibited a tilt toward liquid assets, evidenced by consistently holding companies with relatively higher trading volumes. More-liquid assets contribute to more-flexible exit strategies without price changes and tend to be a ballast during market selloffs. For example, if the portfolio faces successive redemptions in a short period of time, it will be less likely to experience a significant loss. 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 financial services and technology relative to the category average by 10.1 and 3.9 percentage points, respectively. The sectors with low exposure compared with category peers are basic materials and consumer cyclical, underweight the average by 5.7 and 5.6 percentage points of assets, respectively. The strategy owns 33 securities and is relatively concentrated. In particular, 54.6% of the fund’s assets are housed within the top 10 holdings, as opposed to the category’s 39.5% average.