Mahindra Manulife Mid Cap Fund Direct Payout of Income Dis cum Cptl Wrdl INF174V01523

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

The most significant contributor to the rating is the parent firm's five-year risk-adjusted success ratio of 65%. The measure indicates the percentage of a firm's funds that have outperformed their respective category's median return for the period. Noteworthy risk-adjusted performance also influences the rating. 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 targets deeper value plays than its peers’ average in the Mid-Cap Morningstar Category. But in terms of market capitalization, it is on par with peers. Examining additional factor exposure, this strategy has exhibited a tilt toward high-volatility stocks or the shares of companies with histories of the higher standard deviation of returns, compared with Morningstar Category peers in the last few years. This contributes to a higher-risk, higher-reward approach. Different from its historical appetite, however, the Volatility factor was in line with the Morningstar Category average in recent months. This strategy has also had more exposure to high-momentum stocks in recent years. Momentum is based on the premise that stocks that have recently outperformed will continue to outperform, and those that have underperformed will stay behind. Compared with category peers, however, the strategy had less Momentum factor exposure in the latest month. Additionally, the strategy has constantly maintained a defensive tilt, with exposure to high-quality stocks. This means the fund holds consistently profitable, growing companies with solid balance sheets that may help it endure downturns better than Morningstar Category peers. Nevertheless, the fund's Quality 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 by 4.9 percentage points in terms of assets compared with the category average, and its utilities allocation is similar to the category. The sectors with low exposure compared with category peers are technology and consumer cyclical, underweight the average by 3.2 and 3.0 percentage points of assets, respectively. The portfolio is positioned across 69 holdings and its assets are more dispersed than the typical peer in the category. In the most recent disclosure, 22.9% of the portfolio's assets were concentrated in the top 10 fund holdings, compared to the category average's 25.5%.