LIC MF Infrastructure Fund Direct Plan Payout of Income Dis cum Cap Wrdl INF767K01GV7

LIC MF Infrastructure earns an Average Process Pillar rating.

The main driver of the rating is the fund's strong long-term risk-adjusted performance. This can be seen in its five-year alpha calculated relative to the category index, which suggests that the managers have shown skill in their allocation of risk. The stability of the management team also bolsters the rating. Specifically, the fund has not seen a manager change in the last five years. However, the process is limited by its parent firm's disappointing risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 2.4 stars. A lower star rating suggests that the firm has struggled to outperform on a risk-adjusted basis.

This strategy skews toward smaller, higher-growth companies than its average peer in the Equity - Infrastructure Morningstar Category. Looking at additional factor exposure, this strategy has constantly downplayed yield, with its portfolio holding fewer companies with high dividend or buyback yields compared with Morningstar Category peers in recent years. This is demonstrated by the portfolio's low exposure to dividends or buybacks. While companies with high yields provide steady income payments, they may cut payouts if their earnings fall. In the latest month, the strategy was also less exposed to the Yield factor compared with Morningstar Category peers. This strategy also has had a position favoring high-quality stocks in recent years, which could contribute to higher downside risk protection. Though it may trail peers during an economic boom, this orientation contributes to helping it weather periods of economic stress better. Compared with category peers, the strategy also had more exposure to the Quality factor in the most recent month. In addition, this strategy has exhibited a tilt toward higher-volatility stocks in these years, meaning companies that have a higher historical standard deviation of returns compared with peers. Such exposure tends to pay off when markets are hot and to be costly when they are not. In this month, the strategy also had more exposure to the Volatility 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 industrials and consumer cyclical relative to the category average by 18.9 and 4.0 percentage points, respectively. The sectors with low exposure compared with category peers are energy and basic materials, underweight the average by 8.3 and 4.5 percentage points of assets, respectively. The portfolio is composed of 77 holdings and is similarly diversified as peers, with 28.0% of portfolio assets concentrated within the top 10 holdings.