SBI Flexicap Fund Regular Payout Inc Dist cum Cap Wdrl INF200K01230

SBI Flexicap earns an Above Average Process Pillar rating.

The most substantial contributor to the rating is its parent firm's impressive long-term risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 3.7 stars. The parent firm's five-year risk-adjusted success ratio of 62% also contributes to the process. The measure indicates the percentage of a firm's funds that have beat their respective category's median return for the period. Their respectable success ratio suggests that the firm does well for investors and that this fund may benefit from that. However, the process is limited by the fund's mediocre long-term risk-adjusted performance. This can be seen in its five-year alpha calculated relative to the category index, which suggests that the process has struggled over that period.

This strategy tends to hold smaller, deeper value companies than its average peer in the Flexi Cap Morningstar Category. Examining additional factor exposure, this strategy has consistently exhibited a tilt toward low-volatility stocks or companies whose shares have a history of lower standard deviation of returns, compared with its Morningstar Category peers in recent years. These low-risk stocks are typically at their best when markets are not. Low volatility exposure contributes to limited loss on the downside at the cost of a lag in bull markets. In the latest month, the strategy was also less exposed to the Volatility factor compared with Morningstar Category peers. This strategy has also demonstrated more exposure to high-momentum stocks over peers in recent years. Momentum strategies wager that market outperformers will continue to outperform, and laggards will continue to lag. Higher exposure to the former could mean the managers are overweighting stocks on winning streaks. Compared with category peers, the strategy also had more exposure to the Momentum factor in the most recent month. Additionally, the strategy had less exposure to high-quality stocks compared with Morningstar Category peers in recent months. Such positions do not tend to provide much ballast for a portfolio. 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 7.5 and 3.0 percentage points, respectively. The sectors with low exposure compared with category peers are healthcare and technology, underweight the average by 5.6 and 3.5 percentage points of assets, respectively. The portfolio is composed of 62 holdings and is relatively top-heavy. Of the strategy's assets, 51.6% are concentrated within the top 10 holdings, compared to the typical peer's 39.9%.