Baroda BNP Paribas Large Cap Fund Regular Plan Payout Inc Dist cum Cap Wdrl INF251K01910

Baroda BNP Paribas Large Cap earns a Below Average Process Pillar rating.

The process benefits from its team of two portfolio managers, which is sufficient to execute the process. However, the rating is weakened by its parent firm's subpar 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. The parent firm's five-year risk-adjusted success ratio of 41% also limits the process. The measure indicates the percentage of a firm's funds that have beat their respective category's median return for the period. The parent's relatively low success ratio suggests that the firm could do better across its fund lineup.

This strategy is similar to its Large-Cap category peers in terms of market-cap and style exposure. Analyzing additional factors, this strategy has consistently had exposure to high-momentum stocks compared with Morningstar Category peers over the past few years. Momentum is based on the premise that stocks that have recently outperformed will continue to outperform, and those that have underperformed will stay behind. 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 a defensive tilt, with exposure to higher-quality stocks compared with peers in recent years. This means the fund holds consistently profitable, growing companies with solid balance sheets that may help it endure downturns better than Morningstar Category peers. Compared with category peers, the strategy also had more exposure to the Quality factor in the most recent month. Furthermore, this strategy has leaned toward low-yield stocks over recent years, holding fewer companies with high dividend or buyback yields. Its preference for stocks with lower yields may well lead to a growthier portfolio. However, growth stocks court additional risks if their forecasts do not come to fruition and are often more volatile than companies with stable dividends. In this month, however, the strategy had more exposure to the Yield factor than 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 industrials by 4.6 percentage points in terms of assets compared with the category average, and its utilities allocation is similar to the category. The sectors with low exposure compared with category peers are financial services and consumer cyclical, with financial services underweighting the average portfolio by 4.7 percentage points of assets and consumer cyclical similar to the average. The portfolio is positioned across 57 holdings and is diversified among those holdings. In its most recent portfolio, 44.0% of the strategy's assets were concentrated in the top 10 fund holdings, as opposed to the category average's 51.2%.