Mahindra Manulife ELSS Tax Saver Fund Regular Plan Payout of Income Distribution cum Cptl Wdrl INF174V01085

Mahindra Manulife ELSS Tax Saver 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 55%. The measure indicates the percentage of a firm's funds that have outperformed their respective category's median return for the period. Management team experience, which averages 16 years at this fund, also supports the rating. However, the process is limited by the parent firm's five-year retention rate of 59%, which raises concerns about long-term strategic consistency..

This strategy is similar to its ELSS (Tax Savings) category peers in terms of market-cap and style exposure. Analyzing additional factors, this strategy has consistently favored high-quality stocks, including those with low financial leverage and solid returns on equity, compared with Morningstar Category peers during recent years. Though it may trail peers during an economic boom, this orientation contributes to helping it weather periods of economic stress better. Different from its historical appetite, however, the strategy was less exposed to the Quality factor compared with Morningstar Category peers in the most recent month. The managers have also tended to underweight yield compared with peers during recent years. Its preference for stocks with lower yields may well lead to a growthier portfolio. However, growth stocks court additional risks if their forecasts do not come to fruition and are often more volatile than companies with stable dividends. Similarly, in recent months, the strategy also had less exposure to the Yield factor than peers. In addition, the strategy had similar exposure to high-liquidity stocks compared with Morningstar Category peers in recent months. 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 and consumer cyclical relative to the category average by 3.3 and 2.7 percentage points, respectively. The sectors with low exposure compared with category peers are healthcare and utilities, with healthcare underweighting the average portfolio by 5.1 percentage points of assets and utilities similar to the average. The portfolio is positioned across 56 holdings and is relatively top-heavy. Of the strategy's assets, 47.4% are concentrated within the top 10 holdings, as opposed to the category’s 39.5% average.