LIC MF Banking & Financial Services Fund Regular Payout of Income Distribution cum Cap Wdrl INF767K01NG4

LIC MF Bnk& Fin Serv earns a Below Average Process Pillar rating.

The process is bolstered by the stability of the management team. Specifically, the fund has not seen a manager change in the last four years. However, the rating is limited by its parent firm's subpar risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 2.5 stars. A lower star rating suggests that the firm has struggled to outperform on a risk-adjusted basis. The parent firm's five-year risk-adjusted success ratio of 34% also weakens the process. 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 subpar success ratio suggests that the firm could do better across its fund lineup.

This strategy targets smaller plays than its peers’ average in the Sector - Financial Services Morningstar Category. But in terms of style (value/growth) exposure, it does not have much of a bias and resembles the category's typical portfolio. Looking at additional factor exposure, 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. Different from its historical appetite, however, the Yield factor was in line with the Morningstar Category average in recent months. The strategy also had similar exposure to highly liquid stocks compared with Morningstar Category peers in recent months. Additionally, the strategy had less exposure to high-momentum stocks compared with Morningstar Category peers in recent months. 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. 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 has allocations in its top two sectors, consumer cyclical and technology, that are similar to the category. The sectors with low exposure compared with category peers are financial services and healthcare, with financial services underweighting the average portfolio by 2.6 percentage points of assets and healthcare similar to the average. The portfolio is positioned across 32 holdings and its assets are more dispersed than the typical peer in the category. In the most recent disclosure, 67.1% of the strategy's assets were concentrated in the top 10 fund holdings, compared to the category’s 73.1% average.