Edelweiss Large & Mid Fund Growth INF843K01047

Edelweiss Large& Mid Cap Fund earns an Above Average Process Pillar rating.

The leading factor in the rating is its parent firm's superior long-term risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 3.7 stars. The parent firm's five-year risk-adjusted success ratio of 79% also supports the rating. The measure indicates the percentage of a firm's funds that have outperformed their respective category's median return for the period. Their impressive success ratio suggests that the firm does well for investors and that this fund may benefit from that. However, the process is limited by the parent firm's five-year retention rate of 57%, which suggests it could do more to retain its portfolio managers.

This strategy has more exposure to the Growth factor than the Large & Mid-Cap Morningstar Category average. But in terms of market capitalization, it is on par with peers. Analyzing additional factors, this strategy has continually had exposure to high-momentum stocks compared with Morningstar Category peers in the last few years. Momentum is based on the premise that market outperformers will continue to outperform, and laggards will continue to lag. This means that managers are overweighting stocks currently on a winning streak. In recent months, the strategy was more exposed to the Momentum 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. Similarly, in recent months, the strategy also had less exposure to the Yield factor than peers. In addition, this strategy has exhibited a tilt toward liquid assets, evidenced by consistently holding companies with relatively higher trading volumes. More-liquid assets contribute to more-flexible exit strategies without price changes and tend to be a ballast during market selloffs. For example, if the portfolio faces successive redemptions in a short period of time, it will be less likely to suffer from a significant loss. Nevertheless, the fund's Liquidity 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 technology by 5.0 percentage points in terms of assets compared with the category average, and its industrials allocation is similar to the category. The sectors with low exposure compared with category peers are consumer defensive and basic materials; however, the allocations are similar to the category. The portfolio is composed of 97 holdings and is less top-heavy than peers. Specifically, 24.5% of the fund’s assets are concentrated within the top 10 fund holdings, compared to the typical peer's 32.6%. And in closing, in terms of portfolio turnover, looking at year-over-year movements, 36% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.