Sundaram Large Cap Fund Dir Payout of Income Distribution cum capital withdrawal option INF903JA1JD8

Sundaram Large Cap Fund earns a Below Average Process Pillar rating.

The process benefits from the experience of the management team, which averages 12 years at this fund. However, the rating is weakened by the parent firm's five-year risk-adjusted success ratio of 31%. The measure indicates the percentage of a firm's funds that have outperformed their respective category's median return for the period. The parent's relatively low success ratio suggests that the firm could do better across its fund lineup. The parent firm's inferior risk-adjusted performance, as shown by its average 10-year Morningstar Rating of 2.4 stars, also holds the rating back. A lower star rating suggests that the firm has struggled to outperform on a risk-adjusted basis.

This strategy has more exposure to the Growth factor than the Large-Cap Morningstar Category average. But in terms of market capitalization, it is on par with peers. Analyzing additional factors, this strategy has constantly downplayed yield, with its portfolio holding fewer companies with high dividend or buyback yields compared with Morningstar Category peers in recent years. This is demonstrated by the portfolio's low exposure to dividends or buybacks. While companies with high yields provide consistent income payments, they may cut payouts if their earnings decline. In the latest month, the strategy was also less exposed to the Yield factor compared with Morningstar Category peers. This strategy has also favored low-quality stocks. This means the fund avoids holding companies that are consistently profitable, growing, and have solid balance sheets. Such positions do not tend to provide much ballast for a portfolio. Similarly, in recent months, the strategy also had less exposure to the Quality factor than peers. In addition, this strategy has had a bias away from momentum stocks during these years. Momentum investors tend to expect stocks that have done well recently to continue to do so in the short term. Momentum approaches can entail higher turnover and trading costs since the top stocks can often change. In recent months, the strategy also had less Momentum factor exposure than 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 healthcare by 2.8 percentage points in terms of assets compared with the category average, and its industrials allocation is similar to the category. The sectors with low exposure compared with category peers are energy and consumer cyclical; however, the allocations are similar to the category. The portfolio is composed of 34 holdings and is quite concentrated. In particular, 55.7% of the portfolio's assets are housed within the top 10 holdings, as opposed to the typical peer's 51.4%.