UTI Banking and Financial Services Fund Growth INF789F01372

UTI Banking and Financial Services earns an Average Process Pillar rating.

The most important driver of the rating is the parent firm's five-year risk-adjusted success ratio of 64%. The measure indicates the percentage of a firm's funds that have beat their respective category's median return for the period. Strong risk-adjusted performance also influences the rating. This can be seen in the fund's five-year alpha calculated relative to the category index, which suggests that the managers have shown skill in their allocation of risk. 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 2.7 stars. A lower star rating suggests that the firm has struggled to outperform on a risk-adjusted basis.

This strategy leans toward smaller, higher-growth companies compared with its average peer in the Sector - Financial Services Morningstar Category. Analyzing additional factors, there is no consistent pattern in the differences between the factors of the fund's portfolio and its Morningstar Category peers over the past few years, according to our research. The strategy also had more exposure to high-volatility stocks compared with Morningstar Category peers in the most recent month. This orientation tends to pay off most prominently when markets are hot. Additionally, the strategy had more exposure to high-momentum stocks compared with Morningstar Category peers in recent months. Momentum is based on the premise that market outperformers will continue to outperform, and laggards will continue to lag. This means that managers are overweighting stocks currently on a winning streak. 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 has allocations in its top two sectors, financial services and technology, that are similar to the category. The sectors with low exposure compared with category peers are healthcare and industrials; however, the allocations are similar to the category. The portfolio is positioned across 33 holdings and is relatively concentrated. In particular, 72.4% of the fund’s assets are housed within the top 10 holdings, compared with the category’s 70.0% average.