Groww Value Fund Regular Half Yearly Payout of Income Distribution cum Capital Withdrawal INF666M01DI1

Groww Value Fund earns a Below Average Process Pillar rating.

The process is strengthened by the experience of the management team, which averages 13 years at this fund. However, the rating is weakened by the parent firm's five-year risk-adjusted success ratio of 0%. The measure indicates the percentage of a firm's funds that have beat their respective category's median return for the period. The parent's relatively low success ratio suggests that the firm could do better across its fund lineup. Unimpressive risk-adjusted performance also holds the process back. 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 skews toward larger, more growth-oriented companies than its average peer in the Value Morningstar Category. Looking at additional factor exposure, this strategy has exhibited a tendency to hold fewer stocks 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 fall. Different from its historical appetite, however, the strategy was more exposed to the Yield factor compared than its Morningstar Category peers in recent months. This strategy also has had an overweight bias to the volatility factor over these years, meaning it has owned 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. This strategy also has tilted toward low-quality stocks, companies with higher financial leverage and lower profitability over these years. Lacking this ballast, the fund's prospects could rest on its ability to beat peers during economic booms. 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 financial services and consumer cyclical relative to the category average by 12.3 and 6.2 percentage points, respectively. The sectors with low exposure compared with category peers are consumer defensive and basic materials, underweight the average by 6.7 and 4.1 percentage points of assets, respectively. The strategy owns 35 securities and is relatively top-heavy. Of the strategy's assets, 50.7% are concentrated within the top 10 holdings, as opposed to the category’s 40.4% average. And finally, in terms of portfolio turnover, looking at year-over-year movements, 93% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.