ITI ELSS Tax Saver Fund Direct Payout Inc Dist cum Cap Wdrl INF00XX01408

ITI ELSS Tax Saver Fund earns a Below Average Process Pillar rating.

The process is bolstered by the size of its portfolio management team. With three portfolio managers at the helm, the fund is reasonably well-resourced. However, the rating is held back by the parent firm's five-year risk-adjusted success ratio of 9%. 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. The parent firm's five-year retention rate of 56% also weakens the process.

This strategy tends to hold smaller, more undervalued companies than its average peer in the ELSS (Tax Savings) Morningstar Category. Examining additional factor exposure, this strategy has consistently had a defensive tilt owing to its exposure to high-quality stocks over the past few years. Such holdings could cause it to trail peers during economic booms, but help it better endure busts. Different from its historical appetite, however, the strategy was less exposed to the Quality factor compared with Morningstar Category peers in the most recent month. This strategy has also exhibited a tilt toward high-volatility stocks over these years, meaning it has invested in 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 demonstrated a preference for high-momentum stocks in these 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 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 industrials and real estate relative to the category average by 11.6 and 3.4 percentage points, respectively. The sectors with low exposure compared with category peers are healthcare and consumer cyclical, underweight the average by 6.1 and 4.3 percentage points of assets, respectively. The strategy owns 71 securities and is diversified among those holdings. In its most recent portfolio, 33.4% of the fund’s assets were concentrated in the top 10 fund holdings, as opposed to the category average's 38.5%.