Mahindra Manulife Focused Fund Regular Growth INF174V01AD4

Mahindra Manulife Focused Fund earns an Above Average Process Pillar rating.

The main driver of 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. The stability of the management team also contributes to the process. Specifically, the fund has not seen a manager change in the last four years. 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 hold larger, deeper value companies than its average peer in the Focused Fund Morningstar Category. Analyzing additional factors, this strategy has continually displayed high-yield exposure compared with Morningstar Category peers during recent years, holding more companies returning cash to shareholders via dividends or buybacks. Stocks with high yields can be more stable, mature companies, but at times extreme market pressure or fundamental deterioration may prompt them to cut their dividends, which tends to hurt stock performance. In recent months, the strategy was more exposed to the Yield factor compared with its Morningstar Category peers as well. This strategy has also had more exposure to high-momentum stocks in recent years. Momentum approaches bet that rising stocks will continue to rise and that lagging stocks will continue to lag. Compared with category peers, however, the strategy had less Momentum factor exposure in the latest month. Given the high trading volume of holdings, this fund also holds highly liquid assets. More-liquid assets are easier to buy and sell without adversely moving their prices and tend to provide some ballast during market selloffs. They also are easier to sell to meet redemptions if a host of investors decide to leave the fund in a short period of time. In this month, the strategy also had more exposure to the Liquidity 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 energy and consumer defensive relative to the category average by 9.7 and 6.0 percentage points, respectively. The sectors with low exposure compared with category peers are consumer cyclical and industrials, underweight the average by 8.3 and 4.6 percentage points of assets, respectively. The strategy owns 32 securities and is relatively top-heavy. Of the strategy's assets, 52.9% are concentrated within the top 10 holdings, as opposed to the category’s 33.9% average. And finally, in terms of portfolio turnover, looking at year-over-year movements, 81% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.