Edelweiss Small Cap Fund Regular Transfer of Income Distribution cum capital withdrawal plan INF754K01JM8

Edelweiss Small Cap Fund earns a High Process Pillar rating.

The leading factor in the rating is its parent firm's superior long-term risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 3.7 stars. The parent firm's five-year risk-adjusted success ratio of 66% also bolsters the rating. The measure indicates the percentage of a firm's funds that have beat their respective category's median return for the period. Their respectable success ratio suggests that the firm does well for investors and that this fund may benefit from that. Impressive risk-adjusted performance also contributes to the process, as shown by the fund's five-year alpha calculated relative to the category index, which suggests that the managers have shown skill in their allocation of risk.

This strategy owns more growth stocks than its peers in the Small-Cap Morningstar Category. But in terms of market capitalization, it is on par with peers. Analyzing additional factors, this strategy has consistently had less exposure to yield compared with its Morningstar Category peers during recent years. This is demonstrated by the portfolio's low exposure to dividends or buybacks. While companies with high yields provide steady income payments, they may cut payouts if their earnings decline. In the latest month, the strategy was also less exposed to the Yield factor compared with Morningstar Category peers. Given the high trading volume of holdings, this strategy has been exposed to liquid assets during these years. 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. Compared with category peers, the strategy also had more exposure to the Liquidity factor in the most recent month. Additionally, this strategy has demonstrated a preference for high-momentum stocks in these years. Momentum strategies wager that market outperformers will continue to outperform, and laggards will continue to lag. Higher exposure to the former could mean the managers are overweighting stocks on winning streaks. 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 and financial services relative to the category average by 4.1 and 3.6 percentage points, respectively. The sectors with low exposure compared with category peers are industrials and energy, with industrials underweighting the average portfolio by 7.9 percentage points of assets and energy similar to the average. The strategy owns 78 securities and is quite concentrated. Specifically, 22.8% of the fund’s assets are housed within the top 10 holdings, as opposed to the typical peer's 13.7%. And finally, in terms of portfolio turnover, looking at year-over-year movements, 25% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.