Mahindra Manulife Multi Cap Fund Regular Plan Payout of Income Dis cum Cptl Wdrl INF174V01333

Mahindra Manulife Multi Cap Fund earns an Above Average Process Pillar rating.

The largest 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. Excellent risk-adjusted performance also influences the rating. This can be seen in the fund's five-year alpha calculated relative to the category average, which suggests that the managers have shown skill in their allocation of risk. 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 tends to pick smaller market-cap companies compared with the average fund in its peer group, the Multi-Cap Morningstar Category. But in terms of style (value/growth) exposure, it does not have much of a bias and resembles the category's typical portfolio. 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 market outperformers will continue to outperform, and laggards will continue to lag. This means that managers are overweighting stocks currently on a winning streak. Different from its historical appetite, however, the Momentum factor was in line with the Morningstar Category average in recent months. This strategy has also been exposed to liquid stocks during these years. More-liquid assets are easier to buy and sell without adversely moving their prices and tend to provide some ballast during market selloffs. They also are easier to sell to meet redemptions if a host of investors decide to leave the fund in a short period of time. Compared with category peers, the strategy also had more exposure to the Liquidity factor in the most recent month. Additionally, the managers have consistently taken on more risk, demonstrated by higher volatility exposure than peers. This orientation tends to pay off most prominently when markets are hot. 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 financial services by 6.2 percentage points in terms of assets compared with the category average, and its communication services allocation is similar to the category. The sectors with low exposure compared with category peers are industrials and consumer defensive, underweight the average by 3.6 and 2.6 percentage points of assets, respectively. The portfolio is composed of 64 holdings and is relatively top-heavy. Of the strategy's assets, 36.1% are concentrated within the top 10 holdings, as opposed to the category’s 29.3% average. And in closing, in terms of portfolio turnover, looking at year-over-year movements, 116% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.