Mahindra Manulife Large & Mid Cap Fund Regular Reinvestment of Income Dis cum Cptl Wdrl INF174V01929

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

The primary 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. Strong risk-adjusted performance also supports 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 prefers more value-oriented stocks compared with the average fund in its peer group, the Large & Mid-Cap Morningstar Category. But in terms of market capitalization, it is on par with peers. Examining additional factor exposure, this strategy has consistently had exposure to high-momentum stocks compared with Morningstar Category peers over the past 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. Given the high trading volume of holdings, this strategy has been exposed to liquid assets during these years. Such stocks may have less potential upside than illiquid holdings, but they are easier to trade during market downturns. Compared with category peers, the strategy also had more exposure to the Liquidity factor in the most recent month. Additionally, this strategy's portfolio has held more stocks with high dividend or buyback yields than peers over recent years. High-yield stocks tend to be associated with more mature, profitable businesses that can grow as well as provide a stream of income. Such stocks could suffer, however, if setbacks force them to cut their dividends. 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 portfolio is composed of 62 holdings and is relatively concentrated. Specifically, 36.3% of the fund’s assets are housed within the top 10 holdings, compared with the typical peer's 32.2%. And in closing, in terms of portfolio turnover, on a year-over-year basis, 136% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.