Taurus Flexi Cap Fund - Growth INF044D01989

Taurus Flexi Cap Fund earns a Low Process Pillar rating.

The main driver of the rating is the fund's unimpressive long-term risk-adjusted performance. This can be seen in its 10-year alpha calculated relative to the category average, which suggests that the process has struggled over that period. The parent firm's disappointing risk-adjusted performance, as shown by its average 10-year Morningstar Rating of 2.4 stars, also detracts from the process. 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 31% further detracts from 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 value-oriented companies compared with its average peer in the Flexi Cap Morningstar Category. Analyzing additional factors, this strategy has consistently had a defensive tilt owing to its exposure to high-quality stocks over the past few years. High exposure to the quality factor means holding companies that are consistently profitable, growing, and have solid balance sheets. In recent months, the strategy was more exposed to the Quality 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 stocks tend to rise faster and fall harder than the broad market. High-volatility exposure contributes to stronger performance during bull markets, but often at the cost of losing more during downturns. In the most recent month, however, the fund's Volatility exposure was in line with the Morningstar Category average. In addition, the strategy had more exposure to high-yield stocks compared with Morningstar Category peers in recent months. High-yield stocks tend to be connected to more mature companies earning enough cash to return some to shareholders. At times, however, extreme market pressure can force them to cut their dividends, which hurts stock performance. 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 consumer defensive and energy relative to the category average by 4.1 and 3.2 percentage points, respectively. The sectors with low exposure compared with category peers are basic materials and industrials, with basic materials underweighting the average portfolio by 6.1 percentage points of assets and industrials similar to the average. The portfolio is composed of 57 holdings and is relatively top-heavy. Of the strategy's assets, 43.2% are concentrated within the top 10 holdings, compared to the category’s 40.4% average. And finally, in terms of portfolio turnover, looking at year-over-year movements, 133% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.