Mirae Asset Midcap Fund Regular Payout of Income Distribution cum capital withdrawal INF769K01EX4

Mirae Asset Midcap Fund earns a Below Average Process Pillar rating.

The process is bolstered by the stability of the management team. Specifically, the fund has not seen a manager change in the last six years. However, the rating is held back by the parent firm's five-year retention rate of 66%, which raises concerns about long-term strategic consistency.. The parent firm's five-year risk-adjusted success ratio of 46% also detracts from the process. The measure indicates the percentage of a firm's funds that have outperformed 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 targets deeper value plays than its peers’ average in the Mid-Cap Morningstar Category. But in terms of size exposure, it does not have much of a bias and resembles the typical portfolio. Looking at additional factor exposure, this strategy tilts consistently toward stocks with lower quality or the shares of companies with more financial leverage and lower profitability, compared with Morningstar Category peers over the past few years. Lacking this ballast, the fund's prospects could rest on its ability to beat peers during economic booms. In the latest month, the strategy was also less exposed to the Quality factor compared with Morningstar Category peers. This strategy has also displayed a tendency to hold more companies 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. Compared with category peers, the strategy also had more exposure to the Yield factor in the most recent month. Additionally, the strategy has demonstrated a contrarian approach with relatively low exposure to momentum stocks during these years. Momentum investors tend to expect stocks that have done well recently to continue to do so in the short term. Momentum approaches can entail higher turnover and trading costs since the top stocks can often change. In recent months, the strategy also had less Momentum factor exposure than 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 financial services by 2.6 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 industrials, with technology underweighting the average portfolio by 3.5 percentage points of assets and industrials similar to the average. The portfolio has 77 holdings and is about as top-heavy as the category average, with 24.4% of assets in the top 10 holdings.