Edelweiss Mid Cap Fund Direct Plan Payout of Income Distribution cum capital withdrawal option INF843K01AP1

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

The primary contributor to the rating is its parent firm's excellent long-term risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 3.4 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 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 tends to hold smaller, higher-growth companies compared with its average peer in the Mid-Cap Morningstar Category. Analyzing additional factors, this strategy has consistently had exposure to high-momentum stocks compared with Morningstar Category peers over the past few years. Momentum is based on the premise that market outperformers will continue to outperform, and laggards will continue to lag. This means that managers are overweighting stocks currently on a winning streak. In recent months, the strategy was more exposed to the Momentum factor compared with its Morningstar Category peers as well. This strategy has also exhibited a tilt toward high-volatility stocks over these years, meaning it has invested in 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. Furthermore, this strategy has leaned toward low-yield stocks over recent years, holding fewer companies with high dividend or buyback yields. This is demonstrated by the portfolio's low exposure to dividends or buybacks. While companies with high yields provide steady income payments, they may cut payouts if their earnings fall. In recent months, the strategy also had less Yield 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 consumer defensive by 2.7 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 industrials and communication services, with industrials underweighting the average portfolio by 2.6 percentage points of assets and communication services similar to the average. The strategy owns 77 securities and is relatively concentrated. In particular, 28.7% of the strategy's assets are housed within the top 10 holdings, as opposed to the typical peer's 24.0%.