Sundaram ELSS Tax Saver Fund Regular Plan - Half Yearly Payout of Income Distribution cum Cap Wdrl INF173K01NM3

Sundaram ELSS Tax Saver earns an Average Process Pillar rating.

The leading factor in the rating is the stability of the management team. Specifically, the fund has not seen a manager change in the last six 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 its parent firm's subpar risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 2.4 stars. A lower star rating suggests that the firm has struggled to outperform on a risk-adjusted basis.

This strategy does not differentiate itself from its ELSS (Tax Savings) category peers in terms of size and style exposure. Analyzing additional factors, this strategy tilts consistently toward stocks with lower quality or the shares of companies with more financial leverage and lower profitability, compared with Morningstar Category peers over the past few years. Such positions do not tend to provide much ballast for a portfolio. Different from its historical appetite, however, the strategy was more exposed to the Quality factor compared than its Morningstar Category peers in recent months. The managers have also tended to underweight yield compared with peers during recent years. Its preference for stocks with lower yields may well lead to a growthier portfolio. However, growth stocks court additional risks if their forecasts do not come to fruition and are often more volatile than companies with stable dividends. In the most recent month, however, the fund's Yield exposure was in line with the Morningstar Category average. Furthermore, the strategy had less exposure to high-volatility stocks compared with Morningstar Category peers in recent months. These companies have historically been a valuable ballast to steady portfolio returns during market downturns. 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, industrials and consumer defensive, that are similar to the category. The sectors with low exposure compared with category peers are utilities and technology, with utilities underweighting the average portfolio by 2.6 percentage points of assets and technology similar to the average. The portfolio is positioned across 68 holdings and is relatively top-heavy. Of the strategy's assets, 41.9% are concentrated within the top 10 holdings, compared to the typical peer's 39.5%.