Groww Large Cap Fund Regular Plan Quarterly Reinvestment Inc Dist cum Cap Wdrl INF666M01CV6

Groww Large Cap Fund earns a Below Average Process Pillar rating.

The process is bolstered by the experience of the management team, which averages 13 years at this fund. However, the rating is limited by the fund's weak long-term risk-adjusted performance. This can be seen in its five-year alpha calculated relative to the category index, which suggests that the process has struggled over that period. The parent firm's five-year risk-adjusted success ratio of 0% also weakens the process. 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 subpar success ratio suggests that the firm could do better across its fund lineup.

This strategy hews closely to the market cap and investment style of its Large-Cap category peers. Looking at additional factor exposure, this strategy has consistently had less exposure to yield compared with its Morningstar Category peers during recent years. Its preference for stocks with lower yields may well lead to a growthier portfolio. However, growth stocks court additional risks if their forecasts do not come to fruition and are often more volatile than companies with stable dividends. In the latest month, the strategy was also less exposed to the Yield factor compared with Morningstar Category peers. This strategy has also favored low-quality stocks. This means the fund avoids holding companies that are consistently profitable, growing, and have solid balance sheets. Lacking this ballast, the fund's prospects could rest on its ability to beat peers during economic booms. Similarly, in recent months, the strategy also had less exposure to the Quality factor than peers. Additionally, the managers have consistently taken on more risk, demonstrated by higher volatility exposure than peers. Such exposure tends to pay off when markets are hot and to be costly when they are not. In this month, the strategy also had more exposure to the Volatility factor over 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 healthcare relative to the category average by 8.7 and 5.5 percentage points, respectively. The sectors with low exposure compared with category peers are energy and consumer defensive, underweight the average by 8.1 and 5.0 percentage points of assets, respectively. The portfolio has 40 holdings and is about as top-heavy as the category average, with 49.8% of assets in the top 10 holdings. And finally, in terms of portfolio turnover, on a year-over-year basis, 92% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.