Taurus Ethical Fund

Taurus Ethical Fund has delivered consistent long-term SIP XIRR of 15.37% over 10 years and 16.36% over 5 years, though it trails the category average SIP XIRR across all periods (e.g., 16.71% vs 15.37% over 10Y). Against the NIFTY 50, the fund shows positive alpha across all horizons, with 12Y alpha of 3.84% and a 12Y fund CAGR of 12.81% versus the benchmark's 9.79%. Recent performance is softer, with 1Y SIP XIRR of 8.82% well below the category average of 14.1%.

The fund exhibits strong downside protection, with downside capture of 71.67% to 73% over long horizons versus upside capture of roughly 78%, and beta below 0.76 across all periods. Maximum drawdown was a modest -0.29% with a 39-day duration and 134-day recovery, though 7 drawdown events exceeding 10% indicate meaningful interim volatility. Calmar ratios of around 0.49 to 0.57 across horizons reflect steady risk-adjusted returns.

The portfolio holds 58 stocks with a diversified top-10 accounting for roughly 38% of NAV, led by Reliance Industries at 7.48%. IT-Software is the largest sector at 20.2%, followed by Petroleum Products at 11% and Pharmaceuticals at 8.9%, giving a moderate sector tilt. As a Shariah-compliant ethical fund, it excludes conventional financials, which explains the heavy IT and consumer-facing orientation.

The fund lags its sectoral/thematic category on SIP XIRR at every horizon, with gaps of roughly 1-5 percentage points (e.g., 15.28% vs 16.51% over 7Y). However, it demonstrates strong consistency, posting positive calendar-year returns in 11 of the last 14 years, with only 2022, 2016, and 2018 marginally negative. Its benchmark outperformance via positive alpha suggests disciplined stock selection despite category underperformance.

This fund suits investors seeking Shariah-compliant equity exposure with a long-term horizon of 7 years or more, as evidenced by its strongest returns over longer periods. Its low beta and downside capture make it appropriate for moderate risk tolerance investors who want equity growth with reduced volatility. It should be treated as a satellite holding given its thematic/ethical constraint rather than a core portfolio fund.

• Consistently positive alpha versus NIFTY 50 across all horizons, including 5.92% over 7Y and 6.53% over 1Y
• Strong downside protection with downside capture of 71-73% and beta below 0.76 over long periods
• Consistent calendar-year performance with 11 of the last 14 years positive, including 29%+ returns in 2020, 2021, and 2023

• SIP XIRR trails the category average across all periods, with the 1Y gap being widest at 8.82% versus 14.1%
• High expense ratio of 1.77% and recent weak performance (1Y SIP XIRR of 8.82%, 2025 return of just 1.42%) raise concerns about near-term momentum