ITI Mid Cap Fund Direct Reinvestment Inc Dist cum Cap Wdrl INF00XX01945

ITI Mid Cap Fund earns a Below Average Process Pillar rating.

The process benefits from its team of two portfolio managers, which is sufficient to execute the process. However, the rating is weakened by the parent firm's five-year risk-adjusted success ratio of 0%. The measure indicates the percentage of a firm's funds that have beat their respective category's median return for the period. The parent's relatively low success ratio suggests that the firm could do better across its fund lineup. The parent firm's five-year retention rate of 50% also weakens the process.

This strategy targets deeper value plays than its peers’ average in the Mid-Cap Morningstar Category. But in terms of market capitalization, it is on par with peers. Looking at additional factor exposure, this strategy has exhibited a tilt toward high-volatility stocks or the shares of companies with histories of the higher standard deviation of returns, compared with Morningstar Category peers in the last few years. Such stocks tend to rise faster and fall harder than the broad market. High-volatility exposure contributes to stronger performance during bull markets, but often at the cost of losing more during downturns. In recent months, the strategy was more exposed to the Volatility factor compared with its Morningstar Category peers as well. This strategy has also displayed a tendency to hold more companies with high dividend or buyback yields than peers over recent years. Higher-yield stocks can provide steady income, but also have their risks. Dividend payers may cut payouts, for instance, if their earnings fall. Compared with category peers, the strategy also had more exposure to the Yield factor in the most recent month. Additionally, this strategy has demonstrated a bias away from momentum stocks during these years. Momentum investors tend to expect stocks that have done well recently to continue to do so in the short term. Momentum approaches can entail higher turnover and trading costs since the top stocks can often change. In recent months, the strategy also had less Momentum factor exposure than 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 technology and industrials relative to the category average by 4.5 and 4.3 percentage points, respectively. The sectors with low exposure compared with category peers are consumer cyclical and basic materials, with consumer cyclical underweighting the average portfolio by 7.9 percentage points of assets and basic materials similar to the average. The portfolio has 80 holdings and is about as top-heavy as the category average, with 21.8% of assets in the top 10 holdings. And in closing, in terms of portfolio turnover, on a year-over-year basis, 130% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.