Edelweiss Large Cap Fund Growth INF754K01046

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

The leading factor in the rating is its parent firm's excellent 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 66% also contributes to the process. The measure indicates the percentage of a firm's funds that have beat their respective category's median return for the period. Their respectable 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 raises concerns about long-term strategic consistency..

This strategy prefers smaller market-cap companies compared with the average fund in its peer group, the Large-Cap Morningstar Category. But in terms of style (value/growth) exposure, it is similar. Examining additional factor exposure, this strategy has consistently favored high-quality stocks, including those with low financial leverage and solid returns on equity, compared with Morningstar Category peers during recent years. Such holdings could cause it to trail peers during economic booms, but help it better withstand busts. In recent months, the strategy was more exposed to the Quality factor compared with its Morningstar Category peers as well. This strategy has had more exposure to high-momentum stocks over its peers in recent years. Momentum approaches bet that rising stocks will continue to rise and that lagging stocks will continue to lag. Compared with category peers, the strategy also had more exposure to the Momentum factor in the most recent month. In addition, this strategy has exhibited a tilt toward higher-volatility stocks in these years, meaning companies that have a higher historical standard deviation of returns compared with peers. This orientation tends to pay off most prominently when markets are hot. Nevertheless, the fund's Volatility 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 healthcare by 6.0 percentage points in terms of assets compared with the category average, and its basic materials allocation is similar to the category. The sectors with low exposure compared with category peers are energy and technology, with energy underweighting the average portfolio by 3.4 percentage points of assets and technology similar to the average. The portfolio is composed of 72 holdings and is less top-heavy than peers. Specifically, 41.7% of the strategy's assets are concentrated within the top 10 fund holdings, as opposed to the typical peer's 51.8%. And finally, in terms of portfolio turnover, on a year-over-year basis, 76% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.