LIC MF Large & Mid Cap Direct Reinvestment of Income Distribution cum Cap Wrdl INF767K01NF6

LIC MF Large& Mid Cap Fund earns a Below Average Process Pillar rating.

The process is strengthened by the stability of the management team. Specifically, the fund has not seen a manager change in the last five years. However, the rating is held back 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. The parent firm's five-year risk-adjusted success ratio of 30% also detracts from 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 leans toward smaller, higher-growth companies compared with its average peer in the Large & Mid-Cap Morningstar Category. 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. In recent months, the strategy was more exposed to the Quality factor compared with its Morningstar Category peers as well. 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. In the most recent month, however, the fund's Yield exposure was in line with the Morningstar Category average. In addition, this strategy holds highly liquid companies. This gives the managers more flexibility during bear markets to sell without adversely affecting prices. Nevertheless, the fund's Liquidity exposure was in line with peers in the latest month. 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 by 10.7 percentage points in terms of assets compared with the category average, and its consumer cyclical allocation is similar to the category. The sectors with low exposure compared with category peers are healthcare and technology; however, the allocations are similar to the category. The strategy owns 80 securities and invests 30.4% of assets in its top 10 holdings, similar to the category average.