Navi Large & Mid Cap Fund Regular Plan Annual Payout of Income Dis cum Cptl Wdrl Opt INF959L01CV7

Navi Large& Midcap Fund earns a Below Average Process Pillar rating.

The process is strengthened by low costs across its parent firm's funds, whose fees rank in their respective category's second-cheapest quintile on average. The pattern of low costs at the firm indicates that it is focused on delivering strong results for investors. However, the rating is limited by the parent firm's five-year risk-adjusted success ratio of 8%. 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 subpar success ratio suggests that the firm could do better across its fund lineup. Subpar risk-adjusted performance also weakens the process. This can be seen in the fund's five-year alpha calculated relative to the category average, which suggests that the process has struggled over that period.

This strategy tends to hold smaller, higher-growth companies compared with its average peer in the Large & Mid-Cap Morningstar Category. Analyzing additional factors, this strategy has constantly downplayed yield, with its portfolio holding fewer companies with high dividend or buyback yields compared with Morningstar Category peers in recent years. This is demonstrated by the portfolio's low exposure to dividends or buybacks. While companies with high yields provide consistent income payments, they may cut payouts if their earnings decline. In the latest month, the strategy was also less exposed to the Yield factor compared with Morningstar Category peers. 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. Such exposure tends to pay off when markets are hot and to be costly when they are not. 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. High exposure to the quality factor means holding companies that are consistently profitable, growing, and have solid balance sheets. 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 industrials by 3.7 percentage points in terms of assets compared with the category average, and its communication services allocation is similar to the category. The sectors with low exposure compared with category peers are consumer cyclical and utilities, underweight the average by 4.3 and 3.2 percentage points of assets, respectively. The portfolio is composed of 69 holdings and its assets are more dispersed than peers in the category. In particular, 27.4% of the strategy's assets are concentrated in the top 10 fund holdings, compared to the category’s 32.2% average. And finally, in terms of portfolio turnover, on a year-over-year basis, 52% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.