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 primary contributor to 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 bolsters the rating. 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 hews closely to the market cap and investment style of its ELSS (Tax Savings) category peers. Analyzing additional factors, this strategy has consistently had a defensive tilt owing to its exposure to high-quality stocks over the past few years. This means the fund holds consistently profitable, growing companies with solid balance sheets that may help it endure downturns better than Morningstar Category peers. In recent months, the strategy was more exposed to the Quality factor compared with its Morningstar Category peers as well. The strategy also had more exposure to highly liquid stocks compared with Morningstar Category peers in recent months. This gives the managers more flexibility during bear markets to sell without adversely affecting prices. Additionally, the strategy had less exposure to high-momentum stocks compared with Morningstar Category peers in recent months. Momentum tends to be a powerful force in asset markets, as stocks that have done well recently usually continue to do so in the short term. As top performers change, this can sometimes be hard to capture without higher trading costs. 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 3.1 and 2.9 percentage points, respectively. The sectors with low exposure compared with category peers are healthcare and utilities, with healthcare underweighting the average portfolio by 5.0 percentage points of assets and utilities similar to the average. The strategy owns 59 securities and is quite concentrated. Specifically, 46.0% of the strategy's assets are housed within the top 10 holdings, compared to the category’s 39.6% average. And in closing, in terms of portfolio turnover, on a year-over-year basis, 84% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.