Groww Value Fund Direct Monthly Payout of Income Distribution cum Capital Withdrawal INF666M01CY0

Groww Value 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 weakened by the parent firm's five-year risk-adjusted success ratio of 4%. 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. The parent firm's five-year retention rate of 53% also holds the process back.

This strategy tends to hold larger, more growth-oriented companies compared with its average peer in the Value Morningstar Category. Analyzing additional factors, this strategy has exhibited a tendency to hold fewer stocks with high dividend or buyback yields compared with Morningstar Category peers in 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 strategy was more exposed to the Yield factor compared than its Morningstar Category peers in recent months. This strategy has also tilted toward low-quality stocks, companies with higher financial leverage and lower profitability over peers in recent years. 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. This orientation tends to pay off most prominently when markets are hot. 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 by 12.9 percentage points in terms of assets compared with the category average, and its industrials allocation is similar to the category. The sectors with low exposure compared with category peers are consumer defensive and energy, underweight the average by 6.1 and 4.4 percentage points of assets, respectively. The strategy owns 41 securities and is relatively concentrated. Specifically, 49.3% of the strategy's assets are housed within the top 10 holdings, compared with the category’s 39.2% average.