Baroda BNP Paribas Large and Mid Cap Fund Regular Pyt of Inc Dis cum Cap Wdrl INF955L01JS6

Baroda BNP Paribas Large& Mid Cap Fund earns a Below Average Process Pillar rating.

The process is bolstered by its team of two portfolio managers, which is sufficient to execute the process. However, the rating is limited by the parent firm's five-year risk-adjusted success ratio of 38%. 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 subpar success ratio suggests that the firm could do better across its fund lineup. The parent firm's disappointing risk-adjusted performance, as shown by its average 10-year Morningstar Rating of 2.7 stars, also weakens the process. A lower star rating suggests that the firm has struggled to outperform on a risk-adjusted basis.

This strategy is similar to its Large & Mid-Cap category peers in terms of market-cap and style exposure. Examining 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 a position favoring high-quality stocks in recent years, which could contribute to higher downside risk protection. High exposure to the quality factor means holding companies that are consistently profitable, growing, and have solid balance sheets. Compared with category peers, the strategy also had more exposure to the Quality factor in the most recent month. Given the high trading volume of holdings, this fund also tilts toward liquid assets. More-liquid assets contribute to more-flexible exit strategies without price changes and tend to be a ballast during market selloffs. For example, if the portfolio faces successive redemptions in a short period of time, it will be less likely to suffer from a significant loss. 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 financial services and energy relative to the category average by 10.2 and 6.1 percentage points, respectively. The sectors with low exposure compared with category peers are basic materials and consumer cyclical, underweight the average by 8.2 and 7.7 percentage points of assets, respectively. The portfolio is positioned across 46 holdings and is relatively top-heavy. Of the strategy's assets, 39.6% are concentrated within the top 10 holdings, as opposed to the typical peer's 32.2%. And finally, in terms of portfolio turnover, on a year-over-year basis, 1% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.