Edelweiss Large Cap Fund Direct Plan Reinvestment of Income Distribution cum capital Wdrl Opt INF754K01BU8

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

The most important driver of the rating is its parent firm's impressive 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 strengthens 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 commendable 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 targets smaller plays than its peers’ average in the Large-Cap Morningstar Category. But in terms of style (value/growth) exposure, it does not have much of a bias and resembles the category's typical portfolio. Analyzing additional factors, 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 also demonstrated more exposure to high-momentum stocks over peers in recent years. Momentum strategies wager that market outperformers will continue to outperform, and laggards will continue to lag. Higher exposure to the former could mean the managers are overweighting stocks on winning streaks. 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 is a higher-risk, higher-reward approach. 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 financial services allocation is similar to the category. The sectors with low exposure compared with category peers are energy and technology; however, the allocations are similar to the category. The portfolio is positioned across 80 holdings and is less top-heavy than peers. Specifically, 40.8% of the fund’s assets are concentrated within the top 10 fund holdings, as opposed to the category’s 51.5% average. And finally, in terms of portfolio turnover, on a year-over-year basis, 76% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.