A highly appreciated leader in the multi-cap basket popular with the name of Kotak Select Focus Fund has been renamed to Kotak Standard Multicap Fund (G). The multi-cap giant has been decorating the portfolio of thousands of investors beating the benchmark and peers continuously since inception in September 2009. The financial experts at MySIPonline took a prolonged time to run extensive research over this top performing multi-cap fund.
Why It Is Highly Preferred?
In spite of being a late entrant in the equity market, Kotak Standard Mutlicap Fund has overtaken its peers in terms of assets under management. The trust has been built due to the consistent performance of the fund as the mean is 13.28 with a positive alpha of 1.19 while the average of the category has the negative alpha of -1.23 in last 3 years. Kotak Standard Multicap Fund - Growth has also managed to impress due to its performance in the adverse market.
It has a higher Sharpe ratio than the category’s average and benchmark with a less beta which means the returns provided is higher than the risk it has offered. It has been shown consistent growth and has generated an annualised return of 15.06% since inception in September 2009. In last 5 years, it has produced an annualised return of 23.4% beating the benchmark with an alpha of 5. The calendar year of 2014 was the most beneficial which increased the investments by 77%. (data as of 9th Aug 2018)
What Is the Investment Strategy of Kotak Standard Multicap Growth Plan?
Kotak Standard Multicap Fund picks up stocks of varying sectors on the top-down basis. The fund manager takes focused bets on the stocks which have high chances of growth after an in-depth analysis of PE and PB ratio. It currently has 57 stocks with average PE and PB ratio of 25.72 and 3.49. The large-cap influence is very high compared to the peers, and only 18-20% of the corpus is allocated to small and mid-cap though there are no limitations, the fund managers rely more on the financial, construction, and automotive giants in the NIFTY 200 Index. The financial firms such as HDFC Bank, ICICI Bank, RBL, and SBI have a taken a leap in the recent time which has been strategically utilised by Kotak Standard Multicap Fund. Reliance Industries, L&T, and Infosys are also among the top holders. (data as of 9th Aug 2018)
Who Handles the Fund?
The fund manager Mr. Harsha Upadhyaya who is a BE, PGDM, and CFA, has navigated well through the ups and downs of the market by selecting the promising stocks suited to the situation. He has never allowed Kotak Standard Multicap Fund to face negative annual absolute returns under his management though he has never met a tough market yet. He is managing the scheme since August 2012 and has impressed with his performance till now. He has previously worked with DSP BlackRock Investment Managers and UTI AMC.
Kotak Standard Multicap Fund (G) is suitable for a majority of investors as it offers handful returns at the expense of moderate risk. Hence, it is an excellent option to generate long-term capital appreciation. The investors can browse through the official website of MySIPonline to invest and get valuable suggestions regarding investment in this scheme.
