ITI Mid Cap Fund Direct Payout Inc Dist cum Cap Wdrl INF00XX01937

ITI Mid Cap Fund earns a Below Average Process Pillar rating.

The process benefits from its team of two portfolio managers, which is enough to execute the process. However, the rating is held back by the parent firm's five-year risk-adjusted success ratio of 9%. The measure indicates the percentage of a firm's funds that have beat their respective category's median return for the period. The parent's subpar success ratio suggests that the firm could do better across its fund lineup. The parent firm's five-year retention rate of 56% also weakens the process.

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 size exposure, it is similar to the average. Examining additional factor exposure, this strategy has consistently overweighted the volatility factor compared with Morningstar Category peers over the last few years, meaning it invests in stocks with a history of the higher standard deviation of returns. Such exposure tends to pay off when markets are hot and to be costly when they are not. In recent months, the strategy was more exposed to the Volatility factor compared with its Morningstar Category peers as well. 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, the strategy also had more exposure to the Momentum factor in the most recent month. Furthermore, this strategy has leaned toward low-yield stocks over recent years, holding fewer companies with high dividend or buyback yields. Returning capital to shareholders often is not the highest priority of such businesses. The shares of such companies can deliver strong returns if they fulfill their growth projections, but they also carry more risk. 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 industrials by 7.3 percentage points in terms of assets compared with the category average, and its consumer defensive allocation is similar to the category. The sectors with low exposure compared with category peers are consumer cyclical and communication services, with consumer cyclical underweighting the average portfolio by 9.5 percentage points of assets and communication services similar to the average. The portfolio is positioned across 86 holdings and its assets are more dispersed than the typical peer in the category. In the most recent disclosure, 20.7% of the fund’s assets were concentrated in the top 10 fund holdings, as opposed to the category’s 24.0% average.