Mahindra Manulife Large & Mid Cap Fund Regular Growth INF174V01911

Mahindra Manulife Large& Mid Cap Fund earns an Above 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. Strong risk-adjusted performance also bolsters the rating. This can be seen in the fund's five-year alpha calculated relative to the category index, 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, over time, has consistently held more undervalued companies, compared with peers in the Large & Mid-Cap Morningstar Category. But in terms of size exposure, it is similar to the average. Looking at additional factor exposure, this strategy has continually had exposure to high-momentum stocks compared with Morningstar Category peers in the last few years. Momentum approaches bet that rising stocks will continue to rise and that lagging stocks will continue to lag. Different from its historical appetite, however, the strategy was less exposed to the Momentum factor compared with Morningstar Category peers in the most recent month. This strategy has also exhibited a tilt towards more high-liquid assets over peers in recent years, evidenced by consistently holding companies with relatively higher trading volumes. 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's holdings have included more companies with high dividend or buyback yields than peers over these years. High-yield stocks tend to be connected to more mature companies earning enough cash to return some to shareholders. At times, however, extreme market pressure can force them to cut their dividends, which hurts stock performance. In recent months, however, the strategy had less Yield factor exposure 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 6.5 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 real estate, with industrials underweighting the average portfolio by 5.3 percentage points of assets and real estate similar to the average. The strategy owns 62 securities and is quite concentrated. More concretely, 36.3% of the portfolio's assets are housed within the top 10 holdings, versus the category average of 32.2%. And in closing, in terms of portfolio turnover, looking at year-over-year movements, 136% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.