SBI Flexicap Fund Direct Reinvestment Inc Dist cum Cap Wdrl INF200K01UF3

SBI Flexicap earns an Above Average 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. The parent firm's five-year risk-adjusted success ratio of 65% also influences the rating. The measure indicates the percentage of a firm's funds that have beat 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. However, the process is limited by the fund's weak 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.

This strategy leans toward smaller, deeper value companies compared with its average peer in the Flexi Cap Morningstar Category. Looking at additional factor exposure, 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 shown an underweight risk tilt, demonstrated by lower volatility exposure over peers in recent years. Such holdings can limit a strategy's downside, but cause it to lag in bull markets. Similarly, in recent months, the strategy also had less exposure to the Volatility factor than peers. In addition, this strategy has taken on exposure to high-momentum stocks in these years. Momentum strategies wager that market outperformers will continue to outperform, and laggards will continue to lag. Higher exposure to the former could mean the managers are overweighting stocks on winning streaks. In this month, the strategy also had more exposure to the Momentum 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 energy relative to the category average by 8.8 and 3.0 percentage points, respectively. The sectors with low exposure compared with category peers are healthcare and technology, underweight the average by 5.5 and 3.8 percentage points of assets, respectively. The portfolio is composed of 62 holdings and is relatively concentrated. In particular, 51.7% of the strategy's assets are housed within the top 10 holdings, compared with the typical peer's 39.9%.