Axis Growth Opportunities Fund Regular Reinvst of Inc Dis cum Cap Wdrl INF846K01J95

Axis Growth Opportunities Fund earns an Average Process Pillar rating.

The most important driver of 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 parent firm's five-year risk-adjusted success ratio of 54% also contributes to the process. The measure indicates the percentage of a firm's funds that have outperformed their respective category's median return for the period. Their relatively high 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 66%, which raises concerns about long-term strategic consistency..

This strategy leans toward smaller, higher-growth companies than its average peer in the Large & Mid-Cap Morningstar Category. Analyzing additional factors, 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. In addition, this strategy has taken on exposure to high-momentum stocks in these 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 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 technology by 6.1 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 basic materials and financial services, underweight the average by 3.6 and 2.6 percentage points of assets, respectively. The portfolio is composed of 125 holdings and is diversified among those holdings. In its most recent portfolio, 26.7% of the fund’s assets were concentrated in the top 10 fund holdings, compared to the category’s 32.2% average. And finally, in terms of portfolio turnover, on a year-over-year basis, 58% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.