Edelweiss Large & Mid Fund Payout of Income Distribution cum capital Wdrl Opt INF843K01054

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

The largest contributor to 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 66% also influences 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 relatively high 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 owns more growth stocks than its peers in the Large & Mid-Cap Morningstar Category. But in terms of market capitalization, it is on par with peers. Looking at additional factor exposure, this strategy has continually had exposure to high-momentum stocks compared with Morningstar Category peers in the last few years. Momentum approaches bet that rising stocks will continue to rise and that lagging stocks will continue to lag. In recent months, the strategy was more exposed to the Momentum factor compared with its Morningstar Category peers as well. This strategy has also leaned away from the stocks of companies with high dividend or buyback yields over these 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 fall. Similarly, in recent months, the strategy also had less exposure to the Yield factor than peers. This strategy also has tilted toward low-quality stocks, companies with higher financial leverage and lower profitability over these years. Such positions do not tend to provide much ballast for a portfolio. In recent months, the strategy also had less Quality factor exposure than 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 technology and financial services relative to the category average by 4.7 and 2.7 percentage points, respectively. 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 positioned across 97 holdings and its assets are more dispersed than peers in the category. In particular, 25.1% of the fund’s assets are concentrated in the top 10 fund holdings, as opposed to the typical peer's 32.2%. And in closing, in terms of portfolio turnover, looking at year-over-year movements, 36% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.