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 largest contributor to 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 strengthens the process. However, the process is limited by its parent firm's inferior 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 tends to pick smaller market-cap companies compared with the average fund in its peer group, the Flexi Cap Morningstar Category. But in terms of style (value/growth) exposure, it is similar. Analyzing additional factors, this strategy has consistently had exposure to high-momentum stocks compared with Morningstar Category peers over the past few years. Momentum approaches bet that rising stocks will continue to rise and that lagging stocks will continue to lag. 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. Such stocks tend to rise faster and fall harder than the broad market. High-volatility exposure contributes to stronger performance during bull markets, but often at the cost of losing more during downturns. Compared with category peers, the strategy also had more exposure to the Volatility factor in the most recent month. In addition, the strategy had more exposure to high-yield stocks compared with Morningstar Category peers in recent months. High-yield stocks tend to be associated with more mature, profitable businesses that can grow as well as provide a stream of income. Such stocks could suffer, however, if setbacks force them to cut their dividends. 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 industrials relative to the category average by 9.3 and 6.0 percentage points, respectively. The sectors with low exposure compared with category peers are financial services and healthcare, underweight the average by 7.0 and 5.8 percentage points of assets, respectively. The portfolio is composed of 60 holdings and its assets are more dispersed than the typical peer in the category. In the most recent disclosure, 35.7% of the portfolio's assets were concentrated in the top 10 fund holdings, compared to the category’s 39.9% average.