Aditya Birla Sun Life Mid Cap Fund Reinvestment Inc Dist cum Cap Wdrl INF209K01CN6

Aditya BSL Mid 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 limited by the fund's mediocre long-term risk-adjusted performance. This can be seen in its 10-year alpha calculated relative to the category average, which suggests that the process has struggled over that period. The parent firm's five-year retention rate of 67% also detracts from the process.

This strategy skews toward smaller, deeper value companies than its average peer in the Mid-Cap Morningstar Category. 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 surpass 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 has had lower exposure to momentum stocks over peers in recent years. Momentum strategies typically bet that stocks that have recently outperformed will continue to do so, and those that have recently underperformed will keep lagging. Avoiding the former and buying the latter could indicate that managers are averse to chasing momentum. Similarly, in recent months, the strategy also had less exposure to the Momentum factor than peers. In addition, the portfolio has tended to underweight yield, as shown in its lower exposure to companies that pay dividends or buy back shares than peers over these years. 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. Nevertheless, the fund's Yield exposure was in line with peers in the latest month. 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 basic materials by 8.3 percentage points in terms of assets compared with the category average, and its financial services allocation is similar to the category. The sectors with low exposure compared with category peers are technology and industrials, underweight the average by 4.4 and 3.3 percentage points of assets, respectively. The portfolio is composed of 79 holdings and is quite concentrated. More concretely, 27.4% of the portfolio's assets are housed within the top 10 holdings, as opposed to the category’s 23.2% average. And finally, in terms of portfolio turnover, looking at year-over-year movements, 23% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.