Investing can be a difficult and daunting task, especially if you’re just starting out. The idea of managing your own finances and taking risks with your hard-earned money may not seem appealing at first, but it doesn’t have to be. Kotak Emerging Equity Fund is a mutual fund that offers investors an opportunity to diversify their portfolios and take advantage of emerging markets.
In this blog post, we’ll explore what this fund is all about, its key features and benefits, and how you can get started investing in it today.
What is Kotak Emerging Equity Fund?
Kotak Emerging Equity Fund is an open-ended equity scheme that invests in a diversified portfolio of companies with a strong growth potential. The fund follows a bottom-up approach and allows investors to participate in the high growth potential of small and mid-cap companies. The fund has a lock-in period of 3 years and offers SIP and lump sum investment options.
The Kotak Emerging Equity Fund was launched in 2006 and has generated an annualized return of 16.3% since inception. The fund is managed by Vikram Oberoi and has an AUM of Rs. 2,318 crore as on 31st March 2020.
The primary investment objective of the Kotak Emerging Equity Fund is to generate long term capital appreciation from a diversified portfolio of small and mid cap stocks.
Type: Open-ended equity scheme
Investment strategy: Follows a bottom-up approach and invests in a diversified portfolio of companies with high growth potential
Min. Investment: Rs 5,000 for lump sum & Rs 1,000 for SIP
Lock-in period: 3 years
Exit load: 1% if redeemed within 1 year from the date of allotment
Fund manager: Vikram Oberoi
The objective of the fund
The Kotak Emerging Equity Fund seeks to provide long-term capital appreciation by investing primarily in a diversified portfolio of equity and equity-related securities of companies across market capitalization levels.
The fund will invest in companies that are expected to benefit from the structural themes driving India’s economic growth, such as consumption, urbanization, financial inclusion, and infrastructure development. It will also focus on companies that have the potential to deliver above-average earnings growth.
The fund will be managed with a bottom-up stock picking approach with a focus on fundamental research. It will look to invest in high-quality businesses with sound management teams and attractive valuations.
The Investment Strategy Of The Fund
The Kotak Emerging Equity Fund is a diversified equity fund that invests across sectors and market capitalizations. The fund’s investment strategy is to identify companies with strong fundamentals and growth potential.
The fund has a team of experienced research analysts who track companies and industries closely. They identify companies with strong fundamentals and growth potential, and then the fund managers take a detailed view on these companies before taking an investment decision.
The Kotak Emerging Equity Fund has generated strong returns since its inception in 2006, and has outperformed its benchmark index, the Nifty 500, by a wide margin. The fund has also delivered consistent returns over the long term, making it a good option for investors looking for exposure to the Indian stock market.
The Portfolio Of The Fund
The Kotak Emerging Equity Fund is a diversified equity fund that invests across large, mid and small cap companies. The fund follows a growth at a reasonable price (GARP) approach and aims to generate long-term capital appreciation by investing in a portfolio of high-quality companies.
The fund has a flexible mandate and the portfolio is actively managed with the objective of outperforming the Nifty 500 Index over the long term. The fund has a strong track record and has consistently outperformed its benchmark since inception.
As of March 31, 2020, the Kotak Emerging Equity Fund had assets under management (AUM) of Rs. 10,971 crores and was the largest equity fund in India. The fund has a diversified portfolio with investments in various sectors such as banking, financial services, consumer goods, healthcare, information technology etc.
The top 10 holdings of the Kotak Emerging Equity Fund as of March 2020 are HDFC Bank Ltd., Housing Development Finance Corporation Ltd.,Reliance Industries Ltd., Infosys Ltd., Bajaj Finance Ltd., Axis Bank Ltd., Kotak Mahindra Bank Ltd., Larsen & Toubro Ltd., ITC Ltd. and SBI Cards & Payment Services Pvt. Ltd.
Why Invest In Kotak Emerging Equity Fund?
Kotak Emerging Equity Fund is a diversified equity scheme that invests in a portfolio of companies with high growth potential. The fund seeks to provide long-term capital appreciation by investing in a diversified basket of emerging companies across sectors.
The Kotak Emerging Equity Fund has the following key features:
- -Aims to provide long-term capital appreciation by investing in a diversified basket of emerging companies across sectors.
- -Invests in companies with high growth potential and strong fundamentals.
- -Offers comprehensive and regular research on investee companies.
- -Provides active portfolio management for optimum results.
Suitable For Investors With High Risk Appetite
Kotak Emerging Equity Fund is suitable for investors with high risk appetite. The fund takes an active and opportunistic approach to investing in small and mid-sized companies across a wide range of sectors in India.
The fund managers have a deep understanding of the Indian economy and are able to identify companies that are well-positioned to benefit from structural growth themes. They also have a proven track record of generating alpha through stock selection.
The fund has a flexible mandate, which allows the managers to take advantage of market opportunities as they arise. This makes it an ideal choice for investors who are looking for exposure to high-growth companies in India.
Returns Of The Fund
Returns of the fund are subject to market conditions. The fund’s NAV (net asset value) can increase or decrease in value and past performance is not necessarily indicative of future results. Returns for Kotak Emerging Equity Fund for the 1-year, 3-year and 5-year periods ended March 31, 2020 were -4.01%, 9.17% and 11.92% respectively.
Kotak Emerging Equity Fund is a diversified equity scheme that invests across large cap, mid cap and small cap stocks. The scheme follows a bottom-up approach to stock selection and aims to generate long term capital appreciation by investing in companies with good growth prospects. The fund has a moderately high risk profile and is suitable for investors with a high risk appetite who are looking to invest in equities for the long term.
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