Mahindra Manulife ELSS Tax Saver Fund Regular Plan Growth INF174V01077

Mahindra Manulife ELSS Tax Saver Fund earns an Above Average Process Pillar rating.

The primary contributor to the rating is the parent firm's five-year risk-adjusted success ratio of 65%. The measure indicates the percentage of a firm's funds that have beat their respective category's median return for the period. The stability of the management team also strengthens the process. Specifically, the fund has not seen a manager change in the last four years. However, the process is limited by the parent firm's five-year retention rate of 56%, which raises concerns about long-term strategic consistency..

This strategy does not differentiate itself from its ELSS (Tax Savings) category peers in terms of size and style exposure. Looking at additional factor exposure, this strategy has consistently favored high-quality stocks, including those with low financial leverage and solid returns on equity, compared with Morningstar Category peers during recent 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. The strategy also had more exposure to highly liquid stocks compared with Morningstar Category peers in recent months. Such stocks may have less potential upside than illiquid holdings, but they are easier to trade during market downturns. Additionally, the strategy had less exposure to high-momentum stocks compared with Morningstar Category peers in recent months. Momentum tends to be a powerful force in asset markets, as stocks that have done well recently usually continue to do so in the short term. As top performers change, this can sometimes be hard to capture without higher trading costs. 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 financial services and consumer cyclical relative to the category average by 3.1 and 2.9 percentage points, respectively. The sectors with low exposure compared with category peers are healthcare and utilities, with healthcare underweighting the average portfolio by 5.0 percentage points of assets and utilities similar to the average. The strategy owns 59 securities and is relatively top-heavy. Of the strategy's assets, 46.0% are concentrated within the top 10 holdings, as opposed to the category’s 39.6% average. And finally, in terms of portfolio turnover, looking at year-over-year movements, 84% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.