LIC MF Large & Mid Cap Direct Reinvestment of Income Distribution cum Cap Wrdl INF767K01NF6

LIC MF Large& Mid Cap Fund earns a Below Average Process Pillar rating.

The process benefits from the stability of the management team. Specifically, the fund has not seen a manager change in the last four years. However, the rating is held back by its parent firm's subpar risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 2.5 stars. A lower star rating suggests that the firm has struggled to outperform on a risk-adjusted basis. The parent firm's five-year risk-adjusted success ratio of 23% also holds the rating back. 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 skews toward smaller, higher-growth companies than its average peer in the Large & Mid-Cap Morningstar Category. Analyzing additional factors, this strategy has consistently had a defensive tilt owing to its exposure to high-quality stocks over the past few years. Though it may trail peers during an economic boom, this orientation contributes to helping it weather periods of economic stress better. In recent months, the strategy was more exposed to the Quality factor compared with its Morningstar Category peers as well. The managers have also tended to underweight yield compared with peers during recent years. 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. In the most recent month, however, the fund's Yield exposure was in line with the Morningstar Category average. In addition, this strategy has exhibited a tilt toward liquid assets, evidenced by consistently holding companies with relatively higher trading volumes. Such stocks may have less potential upside than illiquid holdings, but they are easier to trade during market downturns. In this month, the strategy also had more exposure to the Liquidity factor 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 industrials by 10.5 percentage points in terms of assets compared with the category average, and its consumer cyclical allocation is similar to the category. The sectors with low exposure compared with category peers are healthcare and technology, underweight the average by 2.9 and 2.7 percentage points of assets, respectively. The portfolio has 75 holdings and invests 31.6% of assets in its top 10 holdings, similar to the category average.