Axis Large Cap Fund Pyt of Inc Dis cum Cap Wdrl INF846K01172

Axis Bluechip Fund earns a Below Average Process Pillar rating.

The process is strengthened by the size of its portfolio management team. With three portfolio managers at the helm, the fund is reasonably well-resourced. 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 retention rate of 66% also holds the rating back.

This strategy has more exposure to the Growth factor than the Large-Cap Morningstar Category average. But in terms of size exposure, it is similar to the average. Looking at additional factor exposure, this strategy has constantly downplayed yield, with its portfolio holding fewer companies with high dividend or buyback yields compared with Morningstar Category peers in 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 also has tilted in favor of high-quality stocks, those that have demonstrated low financial leverage and solid return on equity, during these years. High exposure to the quality factor means holding companies that are consistently profitable, growing, and have solid balance sheets. Compared with category peers, however, the strategy had less Quality factor exposure in the latest month. In addition, this strategy holds highly liquid companies. This gives the managers more flexibility during bear markets to sell without adversely affecting prices. Nevertheless, the fund's Liquidity 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 and communication services relative to the category average by 3.8 and 3.1 percentage points, respectively. The sectors with low exposure compared with category peers are energy and technology, underweight the average by 3.0 and 2.8 percentage points of assets, respectively. The portfolio has 64 holdings and is about as top-heavy as the category average, with 50.4% of assets in the top 10 holdings.