Groww Large Cap Fund Direct Plan Quarterly Reinvestment Inc Dist cum Cap Wdrl INF666M01CP8

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

The process is bolstered by the experience of the management team, which averages 13 years at this fund. However, the rating is weakened by the fund's unimpressive 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 risk-adjusted success ratio of 0% also weakens the process. 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.

This strategy hews closely to the market cap and investment style of its Large-Cap category peers. Examining 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 has also tilted toward low-quality stocks, companies with higher financial leverage and lower profitability over peers in recent years. 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 holds highly liquid companies. More-liquid assets contribute to more-flexible exit strategies without price changes and tend to be a ballast during market selloffs. For example, if the portfolio faces successive redemptions in a short period of time, it will be less likely to suffer from a significant loss. 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 financial services and industrials relative to the category average by 12.7 and 4.7 percentage points, respectively. The sectors with low exposure compared with category peers are energy and consumer defensive, underweight the average by 8.9 and 5.2 percentage points of assets, respectively. The strategy owns 39 securities and invests 51.4% of assets in its top 10 holdings, similar to the category average.