Edelweiss Small Cap Fund Regular Reinvestment of Income Distribution cum capital withdrawal option INF754K01JL0

Edelweiss Small Cap Fund earns a High Process Pillar rating.

The largest contributor to the rating is its parent firm's excellent 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 influences the rating. The measure indicates the percentage of a firm's funds that have outperformed their respective category's median return for the period. Their commendable success ratio suggests that the firm does well for investors and that this fund may benefit from that. Impressive risk-adjusted performance also reinforces 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 has more exposure to the Growth factor than the Small-Cap Morningstar Category average. But in terms of size exposure, it is similar to the average. Analyzing additional factors, this strategy has shown a tendency to hold fewer stocks 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 been exposed to liquid stocks during these years. More-liquid assets are easier to buy and sell without adversely moving their prices and tend to provide some ballast during market selloffs. They also are easier to sell to meet redemptions if a host of investors decide to leave the fund in a short period of time. Compared with category peers, the strategy also had more exposure to the Liquidity 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 stocks that have recently outperformed will continue to outperform, and those that have underperformed will stay behind. 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 portfolio is positioned across 78 holdings and is relatively top-heavy. Of the strategy's assets, 22.8% are concentrated within the top 10 holdings, compared to the category’s 13.7% average. And finally, in terms of portfolio turnover, on a year-over-year basis, 25% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.