UTI Large & Mid Cap Fund-Direct Income Reinvestment Inc Dist cum Cap Wdrl INF789F01UF5

UTI Large& Mid Cap earns an Above Average Process Pillar rating.

The leading factor in the rating is the parent firm's five-year risk-adjusted success ratio of 64%. The measure indicates the percentage of a firm's funds that have outperformed their respective category's median return for the period. Respectable risk-adjusted performance also bolsters the rating. This can be seen in the fund's five-year alpha calculated relative to the category average, which suggests that the managers have shown skill in their allocation of risk. However, the process is limited by its parent firm's disappointing risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 2.8 stars. A lower star rating suggests that the firm has struggled to outperform on a risk-adjusted basis.

This strategy tends to hold smaller, more value-oriented companies than its average peer in the Large & Mid-Cap Morningstar Category. 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. High-yield stocks tend to be connected to more mature companies earning enough cash to return some to shareholders. At times, however, extreme market pressure can force them to cut their dividends, which hurts stock performance. In recent months, the strategy was more exposed to the Yield factor compared with its Morningstar Category peers as well. This strategy has also favored low-quality stocks. This means the fund avoids holding companies that are consistently profitable, growing, and have solid balance sheets. Lacking this ballast, the fund's prospects could rest on its ability to beat peers during economic booms. Similarly, in recent months, the strategy also had less exposure to the Quality factor than peers. Additionally, the strategy has demonstrated a contrarian approach with relatively low exposure to momentum stocks during these years. Momentum strategies typically bet that stocks that have recently outperformed will continue to do so, and those that have recently underperformed will keep lagging. Avoiding the former and buying the latter could indicate that managers are averse to chasing momentum. In recent months, the strategy also had less Momentum factor exposure than its peers. 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 communication services relative to the category average by 7.4 and 3.1 percentage points, respectively. The sectors with low exposure compared with category peers are industrials and consumer cyclical, underweight the average by 6.4 and 4.6 percentage points of assets, respectively. The portfolio is composed of 69 holdings and is about as top-heavy as the category average, with 33.4% of assets in the top 10 holdings. And in closing, in terms of portfolio turnover, looking at year-over-year movements, 56% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.