Mahindra Manulife Multi Cap Fund Regular Plan Reinvestment of Income Dis cum Cptl Wdrl INF174V01325

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

The main 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 outperformed their respective category's median return for the period. Respectable 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 investment style, it is on par with peers. Examining additional factor exposure, this strategy has continually had exposure to high-momentum stocks compared with Morningstar Category peers in the last few years. Momentum is based on the premise that stocks that have recently outperformed will continue to outperform, and those that have underperformed will stay behind. Different from its historical appetite, however, the Momentum factor was in line with the Morningstar Category average in recent months. Given the high trading volume of holdings, this strategy has been exposed to liquid assets during these years. This gives the managers more flexibility during bear markets to sell without adversely affecting prices. Compared with category peers, the strategy also had more exposure to the Liquidity factor in the most recent month. In addition, this strategy has exhibited a tilt toward higher-volatility stocks in these years, meaning companies that have a higher historical standard deviation of returns compared with 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 strategy owns 64 securities and is quite concentrated. Specifically, 36.1% of the portfolio's assets are housed within the top 10 holdings, compared to the typical peer's 29.3%. And finally, 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.