Axis Large & Mid Cap Fund Regular Growth INF846K01J79

Axis Growth Opportunities Fund earns an Average Process Pillar rating.

The predominant contributor to the rating is the fund's impressive long-term risk-adjusted performance. This can be seen in its five-year alpha calculated relative to the category index, which suggests that the managers have shown skill in their allocation of risk. The size of the portfolio management team also contributes to the process. With three portfolio managers, the fund is reasonably well-resourced. However, the process is limited by the parent firm's five-year retention rate of 66%, which raises concerns about long-term strategic consistency..

This strategy leans toward smaller, higher-growth companies compared with its average peer in the Large & Mid-Cap Morningstar Category. Examining additional factor exposure, this strategy has consistently favored high-quality stocks, including those with low financial leverage and solid returns on equity, compared with Morningstar Category peers during recent years. High exposure to the quality factor means holding companies that are consistently profitable, growing, and have solid balance sheets. In recent months, the strategy was more exposed to the Quality 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. This orientation tends to pay off most prominently when markets are hot. Compared with category peers, the strategy also had more exposure to the Volatility factor in the most recent month. Additionally, this strategy has demonstrated a preference for high-momentum stocks in these years. Momentum approaches bet that rising stocks will continue to rise and that lagging stocks will continue to lag. In this month, the strategy also had more exposure to the Momentum 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 2.6 percentage points in terms of assets compared with the category average, and its communication services allocation is similar to the category. The sectors with low exposure compared with category peers are consumer cyclical and industrials, with consumer cyclical underweighting the average portfolio by 4.0 percentage points of assets and industrials similar to the average. The portfolio is composed of 109 holdings and is similarly diversified as peers, with 33.1% of portfolio assets concentrated within the top 10 holdings.