Mahindra Manulife Mid Cap Fund Regular Reinvestment of Income Dis cum Cptl Wdrl INF174V01481

Mahindra Manulife Mid Cap Fund earns an Average Process Pillar rating.

The main driver of the rating is the parent firm's five-year risk-adjusted success ratio of 58%. The measure indicates the percentage of a firm's funds that have outperformed their respective category's median return for the period. Impressive risk-adjusted performance also supports the process. This can be seen in the fund's five-year alpha calculated relative to the category index, which suggests that the managers have shown skill in their allocation of risk. 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, over time, has consistently held more undervalued companies, compared with peers in the Mid-Cap Morningstar Category. But in terms of size exposure, it is similar to the average. Analyzing additional factors, this strategy has consistently had exposure to high-momentum stocks compared with Morningstar Category peers over the past few years. Momentum strategies wager that market outperformers will continue to outperform, and laggards will continue to lag. Higher exposure to the former could mean the managers are overweighting stocks on winning streaks. Different from its historical appetite, however, the strategy was less exposed to the Momentum factor compared with Morningstar Category peers in the most recent month. This strategy also has had an overweight bias to the volatility factor over these years, meaning it has owned companies that have a higher historical standard deviation of returns. Such exposure tends to pay off when markets are hot and to be costly when they are not. Compared with category peers, however, the strategy had less Volatility factor exposure in the latest month. Additionally, this strategy's portfolio has held more stocks with high dividend or buyback yields than peers over recent years. 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. Nevertheless, the fund's Yield 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 consumer defensive and energy relative to the category average by 5.4 and 4.7 percentage points, respectively. The sectors with low exposure compared with category peers are technology and real estate, underweight the average by 5.9 and 2.7 percentage points of assets, respectively. The portfolio has 72 holdings and is similarly diversified as peers, with 22.8% of portfolio assets concentrated within the top 10 holdings.