Union ELSS Tax Saver Fund Reinvestment of Income Distribution cum capital withdrawal INF582M01310

Union ELSS Tax Saver Fund earns an Average Process Pillar rating.

The most significant contributor to the rating is the firm's retention rate of the firm's portfolio managers, which is 83% over the timeframe for which data is available, up to five years. The size of the portfolio management team also contributes to the process. With two portfolio managers, the fund is reasonably well-resourced. However, the process is limited by the parent firm's five-year risk-adjusted success ratio of 29%. 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 has more exposure to the Growth factor than the ELSS (Tax Savings) Morningstar Category average. But in terms of size exposure, it does not have much of a bias and resembles the typical portfolio. Looking at additional factor exposure, this strategy has consistently had exposure to high-momentum stocks compared with Morningstar Category peers over the past 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 an overweight bias to the volatility factor over these years, meaning it has owned companies that have a higher historical standard deviation of returns. This orientation tends to pay off most prominently when markets are hot. Compared with category peers, the strategy also had more exposure to the Volatility factor in the most recent month. Additionally, this strategy has had lower yield exposure than peers, with the portfolio holding fewer stocks with high dividend or buyback yields over these years. Returning capital to shareholders often is not the highest priority of such businesses. The shares of such companies can deliver strong returns if they fulfill their growth projections, but they also carry more risk. In recent months, the strategy also had less Yield 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 industrials by 6.8 percentage points in terms of assets compared with the category average, and its technology allocation is similar to the category. The sectors with low exposure compared with category peers are utilities and consumer defensive; however, the allocations are similar to the category. The strategy owns 76 securities and is less top-heavy than peers. Specifically, 35.9% of the portfolio's assets are concentrated within the top 10 fund holdings, as opposed to the category’s 39.5% average.