SBI Banking & Financial Services Regular Payout Inc Dist cum Cap Wdrl INF200KA1481

SBI Banking& Financial Services Fund earns a High Process Pillar rating.

The leading factor in the rating is its parent firm's impressive long-term risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 3.7 stars. Noteworthy risk-adjusted performance also influences the rating. This can be seen in the fund's 10-year alpha calculated relative to the category average, which suggests that the managers have shown skill in their allocation of risk. The parent firm's five-year risk-adjusted success ratio of 65% reinforces the process. The measure indicates the percentage of a firm's funds that have beat their respective category's median return for the period. Their compelling success ratio suggests that this firm does well for investors and that this fund may benefit from that.

This strategy prefers smaller market-cap companies compared with the average fund in its peer group, the Sector - Financial Services Morningstar Category. But in terms of investment style, it is on par with peers. Analyzing additional factors, this strategy consistently held some companies with relatively lower trading volume compared with Morningstar Category peers in the last few years. Less-liquid stocks might offer strong returns to compensate for their risks, but they can be harder and more expensive to trade in bear markets. Different from its historical appetite, however, the Liquidity factor was in line with the Morningstar Category average in recent months. 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. Additionally, the managers have consistently taken on more risk, demonstrated by higher volatility exposure than peers. This orientation tends to pay off most prominently when markets are hot. Nevertheless, the fund's Volatility 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, financial services and consumer cyclical, that are similar to the category. The sectors with low exposure compared with category peers are technology and healthcare; however, the allocations are similar to the category. The strategy owns 25 securities and is relatively top-heavy. Of the strategy's assets, 80.2% are concentrated within the top 10 holdings, compared to the category’s 73.6% average.