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 main driver of the rating is the parent firm's five-year risk-adjusted success ratio of 55%. 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 contributes to 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 56%, which raises concerns about long-term strategic consistency..

This strategy prefers more value-oriented stocks compared with the average fund in its peer group, the Mid-Cap Morningstar Category. But in terms of market capitalization, it is on par with peers. Examining additional factor exposure, this strategy has consistently had exposure to high-momentum stocks compared with Morningstar Category peers over the past few years. Momentum approaches bet that rising stocks will continue to rise and that lagging stocks will continue to lag. Different from its historical appetite, however, the Momentum factor was in line with the Morningstar Category average in recent months. This strategy has also exhibited a tilt toward high-volatility stocks over these years, meaning it has invested in companies that have a higher historical standard deviation of returns. This is a higher-risk, higher-reward approach. Compared with category peers, the strategy also had more exposure to the Volatility factor in the most recent month. In addition, this strategy has favored high-quality stocks compared to peers over the years, which could be a good option for downside risk protection. Such holdings could cause it to trail peers during economic booms, but help it better withstand busts. In recent months, however, the strategy had less Quality 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 consumer defensive and energy relative to the category average by 6.5 and 3.0 percentage points, respectively. The sectors with low exposure compared with category peers are technology and consumer cyclical, underweight the average by 4.6 and 3.0 percentage points of assets, respectively. The strategy owns 71 securities and invests 22.5% of assets in its top 10 holdings, similar to the category average.