Nippon India Value Fund Direct Plan Reinvestment Inc Dist cum Cap Wdrl INF204K01K31

Nippon India Value earns an Above Average Process Pillar rating.

The most significant contributor to the rating is the fund's impressive long-term risk-adjusted performance. This can be seen in its ten-year alpha calculated relative to the category average, which suggests that the managers have shown skill in their allocation of risk. Management team experience, which averages 20 years at this fund, also bolsters the rating. However, the process is limited by its parent firm's subpar risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 2.8 stars. A lower star rating suggests that the firm has struggled to outperform on a risk-adjusted basis.

This strategy has tended to hold more growth stocks than others in the Value Morningstar Category. But in terms of size exposure, it is similar to the average. Looking at additional factor exposure, this strategy has consistently favored low-quality stocks compared with Morningstar Category peers over the past few years. Lacking this ballast, the fund's prospects could rest on its ability to beat peers during economic booms. In the latest month, the strategy was also less exposed to the Quality factor compared with Morningstar Category peers. This strategy also has had lower yield exposure than peers over these years; its portfolio has held fewer stocks with high dividend or buyback yields. This is demonstrated by the portfolio's low exposure to dividends or buybacks. While companies with high yields provide steady income payments, they may cut payouts if their earnings fall. In the most recent month, however, the fund's Yield exposure was in line with the Morningstar Category average. Additionally, the managers have consistently taken on more risk, demonstrated by higher volatility exposure than peers. This contributes to a higher-risk, higher-reward approach. In this month, the strategy also had more exposure to the Volatility factor over 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 technology and industrials relative to the category average by 5.9 and 3.6 percentage points, respectively. The sectors with low exposure compared with category peers are consumer defensive and consumer cyclical, underweight the average by 4.9 and 4.6 percentage points of assets, respectively. The portfolio has 79 holdings and is about as top-heavy as the category average, with 38.6% of assets in the top 10 holdings. And in closing, in terms of portfolio turnover, looking at year-over-year movements, 53% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.