Mahindra Manulife Large Cap Fund Direct Reinvestment of Income Dis cum Cptl Wdrl INF174V01739

Mahindra Manulife Large Cap Fund earns an Average Process Pillar rating.

The leading factor in 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. Management team experience, which averages 17 years at this fund, also contributes to the process. 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, over time, has consistently held more undervalued companies, compared with peers in the Large-Cap Morningstar Category. But in terms of size exposure, it does not have much of a bias and resembles the typical portfolio. Analyzing additional factors, this strategy has had relatively low exposure to momentum stocks compared with Morningstar Category peers continually in the last few 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. In the latest month, the strategy was also less exposed to the Momentum factor compared with Morningstar Category peers. The strategy also had more exposure to highly liquid stocks compared with Morningstar Category peers in recent months. This gives the managers more flexibility during bear markets to sell without adversely affecting prices. In addition, the strategy had similar exposure to high-yield stocks compared with Morningstar Category peers in recent months. 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 industrials relative to the category average by 4.0 and 3.7 percentage points, respectively. The sectors with low exposure compared with category peers are consumer cyclical and technology, with consumer cyclical underweighting the average portfolio by 4.0 percentage points of assets and technology similar to the average. The portfolio has 41 holdings and is similarly diversified as peers, with 52.8% of portfolio assets concentrated within the top 10 holdings. And finally, in terms of portfolio turnover, on a year-over-year basis, 87% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.