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 predominant contributor to the rating is its parent firm's superior 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 bolsters 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 impressive 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, more growth-oriented companies than its average peer in the Mid-Cap Morningstar Category. Analyzing additional factors, this strategy has continually had exposure to high-momentum stocks compared with Morningstar Category peers in the last 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 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 decline. In the most recent month, however, the fund's Yield exposure was in line with the Morningstar Category average. In addition, this strategy has exhibited a tilt toward higher-volatility stocks in these years, meaning companies that have a higher historical standard deviation of returns compared with peers. Such stocks tend to rise faster and fall harder than the broad market. High-volatility exposure contributes to stronger performance during bull markets, but often at the cost of losing more during downturns. 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 consumer defensive relative to the category average by 3.3 and 2.6 percentage points, respectively. The sectors with low exposure compared with category peers are industrials and communication services; however, the allocations are similar to the category. The strategy owns 81 securities and is quite concentrated. Specifically, 28.5% of the fund’s assets are housed within the top 10 holdings, versus the category average of 23.2%. And finally, in terms of portfolio turnover, looking at year-over-year movements, 50% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.