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 beat their respective category's median return for the period. Impressive 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 size exposure, it is similar to the average. Analyzing additional factors, this strategy has continually had exposure to high-momentum stocks compared with Morningstar Category peers in the last 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 strategy was less exposed to the Momentum factor compared with Morningstar Category peers in the most recent month. 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 orientation tends to pay off most prominently when markets are hot. Compared with category peers, however, the strategy had less Volatility factor exposure in the latest 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 6.1 and 5.0 percentage points, respectively. The sectors with low exposure compared with category peers are technology and consumer cyclical, underweight the average by 5.1 and 3.1 percentage points of assets, respectively. The portfolio is composed of 68 holdings and is about as top-heavy as the category average, with 22.8% of assets in the top 10 holdings.