Quant Flexi Cap Fund Direct Plan Reinvestment of Income Distribution cum capital Wdrl INF966L01903

Quant Flexi Cap Fund earns a High Process Pillar rating.

The leading factor in the rating is its parent firm's superior long-term risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 4.8 stars. The parent firm's five-year risk-adjusted success ratio of 100% also bolsters the rating. The measure indicates the percentage of a firm's funds that have outperformed their respective category's median return for the period. Their respectable success ratio suggests that the firm does well for investors and that this fund may benefit from that.

This strategy tends to hold smaller, more undervalued companies compared with its average peer in the Flexi Cap Morningstar Category. Examining additional factor exposure, 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 is a higher-risk, higher-reward approach. In recent months, the strategy was more exposed to the Volatility factor compared with its Morningstar Category peers as well. This strategy has also been exposed to liquid stocks during these years. Such stocks may have less potential upside than illiquid holdings, but they are easier to trade during market downturns. Compared with category peers, the strategy also had more exposure to the Liquidity factor in the most recent month. Moreover, this strategy has been underweighting momentum stocks during these years. Momentum tends to be a powerful force in asset markets, as stocks that have done well recently usually continue to do so in the short term. As top performers change, this can sometimes be hard to capture without higher trading costs. In recent months, the strategy also had less Momentum factor exposure than 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 energy and consumer defensive relative to the category average by 12.7 and 11.9 percentage points, respectively. The sectors with low exposure compared with category peers are financial services and technology, underweight the average by 11.3 and 10.1 percentage points of assets, respectively. The portfolio is composed of 42 holdings and is quite concentrated. More concretely, 53.3% of the portfolio's assets are housed within the top 10 holdings, versus the category average of 40.4%. And finally, in terms of portfolio turnover, looking at year-over-year movements, 116% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.