LIC MF Small Cap Fund Regular Transfer of Income Distribution cum Cap Wdrl plan INF397L01JV5

LIC MF Small Cap Fund earns a Below Average Process Pillar rating.

The process is bolstered by its team of two portfolio managers, which is enough to execute the process. However, the rating is limited by its parent firm's inferior 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 holds the process back. 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 relatively low success ratio suggests that the firm could do better across its fund lineup.

This strategy owns more growth stocks than its peers in the Small-Cap Morningstar Category. But in terms of market capitalization, it is on par with peers. Looking at additional factor exposure, this strategy has consistently had less exposure to yield compared with its Morningstar Category peers during recent years. This is demonstrated by the portfolio's low exposure to dividends or buybacks. While companies with high yields provide consistent income payments, they may cut payouts if their earnings fall. In the latest month, the strategy was also less exposed to the Yield factor compared with Morningstar Category peers. This strategy also has had a defensive tilt, with exposure to higher-quality stocks compared with peers in recent years. High exposure to the quality factor means holding companies that are consistently profitable, growing, and have solid balance sheets. Compared with category peers, the strategy also had more exposure to the Quality factor in the most recent month. In addition, this strategy has taken on exposure to high-momentum stocks in these years. Momentum approaches bet that rising stocks will continue to rise and that lagging stocks will continue to lag. In recent months, however, the strategy had less Momentum factor exposure over 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 industrials and utilities relative to the category average by 13.4 and 5.8 percentage points, respectively. The sectors with low exposure compared with category peers are financial services and healthcare, underweight the average by 10.2 and 6.3 percentage points of assets, respectively. The portfolio is positioned across 68 holdings and is relatively top-heavy. Of the strategy's assets, 26.6% are concentrated within the top 10 holdings, compared to the typical peer's 17.9%.