Bank of India Flexi Cap Fund Direct Payout of Income Dist cum Cap Wdrl INF761K01FE8

Bank of India Flexi Cap Fund earns an Above Average Process Pillar rating.

The most important driver of the rating is the parent firm's five-year risk-adjusted success ratio of 57%. The measure indicates the percentage of a firm's funds that have beat their respective category's median return for the period. Management team experience, which averages 18 years at this fund, also supports the rating. 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 2.7 stars. A lower star rating suggests that the firm has struggled to outperform on a risk-adjusted basis.

This strategy prefers smaller market-cap firms compared with the average fund in its peer group, the Flexi Cap Morningstar Category. But in terms of investment style, it is on par with peers. 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. Given the high trading volume of holdings, this fund also tilts toward liquid assets. Such stocks may have less potential upside than illiquid holdings, but they are easier to trade during market downturns. In this month, the strategy also had more exposure to the Liquidity 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 basic materials and utilities relative to the category average by 8.9 and 3.8 percentage points, respectively. The sectors with low exposure compared with category peers are financial services and consumer cyclical, underweight the average by 5.7 and 5.3 percentage points of assets, respectively. The strategy owns 60 securities and is similarly diversified as peers, with 36.9% of portfolio assets concentrated within the top 10 holdings.