Bandhan Multi Cap Fund Direct Payout Inc Dist cum Cap Wdrl INF194KB1CM8

Bandhan Multi Cap Fund earns a Below Average Process Pillar rating.

The process benefits from low expenses across its parent firm's funds, whose fees rank in their respective category's middle quintile on average. The pattern of low fees at the firm indicates that it is focused on delivering strong results for investors. However, the rating is held back by its parent firm's subpar risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 2.3 stars. A lower star rating suggests that the firm has struggled to outperform on a risk-adjusted basis. The parent firm's five-year risk-adjusted success ratio of 28% also weakens the process. 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 subpar success ratio suggests that the firm could do better across its fund lineup.

This strategy leans toward smaller, more undervalued companies compared with its average peer in the Multi-Cap Morningstar Category. Examining additional factor exposure, this strategy has consistently had low exposure to momentum stocks in the past few years. Momentum tends to be a powerful force in asset markets, as stocks that have done well recently usually continue to do so in the short term. As top performers change, this can sometimes be hard to capture without higher trading costs. In the latest month, the strategy was also less exposed to the Momentum factor compared with Morningstar Category peers. This strategy also has tilted in favor of high-quality stocks, those that have demonstrated low financial leverage and solid return on equity, during these years. This means the fund holds consistently profitable, growing companies with solid balance sheets that may help it weather downturns better than Morningstar Category peers. Compared with category peers, however, the strategy had less Quality factor exposure in the latest month. Additionally, the managers have tended to overweight yield, shown by the portfolio's high exposure to stocks paying dividends or buying back shares. 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. Nevertheless, the fund's Yield exposure was in line with peers in the latest month. 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 consumer defensive relative to the category average by 4.8 and 2.5 percentage points, respectively. The sectors with low exposure compared with category peers are industrials and communication services, underweight the average by 3.8 and 2.7 percentage points of assets, respectively. The portfolio is composed of 102 holdings and is similarly diversified as peers, with 27.9% of portfolio assets concentrated within the top 10 holdings.