Groww Large Cap Fund Direct Plan Monthly Payout Inc Dist cum Cap Wdrl INF666M01CM5

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

The process benefits from the experience of the management team, which averages 13 years at this fund. However, the rating is limited by the fund's mediocre 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 53% also limits the process.

This strategy does not differentiate itself from its Large-Cap category peers in terms of size and style exposure. Looking at additional factor exposure, this strategy has consistently had less exposure to yield compared with its Morningstar Category peers during recent years. Returning capital to shareholders often is not the highest priority of such businesses. The shares of such companies can deliver strong returns if they fulfill their growth projections, but they also carry more risk. Different from its historical appetite, however, the Yield factor was in line with the Morningstar Category average in recent months. 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. Such positions do not tend to provide much ballast for a portfolio. Similarly, in recent months, the strategy also had less exposure to the Quality factor than peers. 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 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 industrials and financial services relative to the category average by 8.8 and 5.2 percentage points, respectively. The sectors with low exposure compared with category peers are energy and consumer defensive, underweight the average by 8.9 and 5.4 percentage points of assets, respectively. The portfolio is composed of 44 holdings and is diversified among those holdings. In its most recent portfolio, 48.8% of the strategy's assets were concentrated in the top 10 fund holdings, compared to the category average's 51.2%.