Sundaram Infrastructure Advantage Fund Direct Plan Transfer Inc Dist cum Cap Wdrl

Sundaram Infrastructure Advantage earns a Below Average Process Pillar rating.

The process benefits from its team of two portfolio managers, which is sufficient to execute the process. However, the rating is held back by its parent firm's subpar risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 2.5 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 37% also holds the process back. The measure indicates the percentage of a firm's funds that have outperformed their respective category's median return for the period. The parent's subpar success ratio suggests that the firm could do better across its fund lineup.

This strategy skews toward larger, more growth-oriented companies compared with its average peer in the Equity - Infrastructure Morningstar Category. Analyzing additional factors, this strategy has consistently exhibited a tilt toward low-volatility stocks or companies whose shares have a history of lower standard deviation of returns, compared with its Morningstar Category peers in recent years. These companies have historically been a valuable ballast to steady portfolio returns during market downturns. In the latest month, the strategy was also less exposed to the Volatility factor compared with Morningstar Category peers. This strategy has also leaned away from the stocks of companies 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 the most recent month, however, the fund's Yield exposure was in line with the Morningstar Category average. Additionally, this strategy has tilted toward illiquid stocks during these years, evidenced by holding companies with relatively lower trading volumes than peers. 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. In recent months, the strategy also had less Liquidity 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 communication services and energy relative to the category average by 6.6 and 4.6 percentage points, respectively. The sectors with low exposure compared with category peers are basic materials and financial services, underweight the average by 5.6 and 2.9 percentage points of assets, respectively. The strategy owns 58 securities and is relatively top-heavy. Of the strategy's assets, 46.4% are concentrated within the top 10 holdings, compared to the category’s 28.9% average.