Mahindra Manulife ELSS Tax Saver Fund Regular Plan Growth INF174V01077

Mahindra Manulife ELSS Tax Saver Fund earns an Above Average Process Pillar rating.

The most significant contributor to 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 process. 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. Looking at additional factor exposure, this strategy has consistently had a defensive tilt owing to its exposure to high-quality stocks over the past few years. High exposure to the quality factor means holding companies that are consistently profitable, growing, and have solid balance sheets. 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. This strategy also has had lower yield exposure than peers over these years; its portfolio has held fewer stocks with high dividend or buyback yields. 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 composed of 56 holdings and is relatively concentrated. Specifically, 47.4% of the strategy's assets are housed within the top 10 holdings, compared with the category’s 39.5% average.