Bank of India Bluechip Fund Direct Growth INF761K01FL3

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

The most notable contributor to the rating is the parent firm's five-year risk-adjusted success ratio of 65%. The measure indicates the percentage of a firm's funds that have beat their respective category's median return for the period. The size of the portfolio management team also strengthens the process. With two portfolio managers, the fund is reasonably well-resourced. However, the process is limited by its parent firm's disappointing risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 2.6 stars. A lower star rating suggests that the firm has struggled to outperform on a risk-adjusted basis.

This strategy leans toward smaller, more growth-oriented companies than its average peer in the Large-Cap Morningstar Category. 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 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 exposure tends to pay off when markets are hot and to be costly when they are not. 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. This gives the managers more flexibility during bear markets to sell without adversely affecting prices. 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 utilities and basic materials relative to the category average by 5.6 and 4.5 percentage points, respectively. The sectors with low exposure compared with category peers are consumer defensive and communication services, underweight the average by 4.9 and 4.0 percentage points of assets, respectively. The portfolio is positioned across 52 holdings and is diversified among those holdings. In its most recent portfolio, 42.6% of the fund’s assets were concentrated in the top 10 fund holdings, compared to the category’s 51.8% average. And in closing, in terms of portfolio turnover, looking at year-over-year movements, 60% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.