The net asset value (NAV) of Kotak Emerging Equity Fund as of August 16, 2024 was Rs 149.446. The size of the fund is Rs 50,601.84 crore. It has an expense ratio of 0.34% against a category average of 0.73%.
The Kotak Emerging Equity Fund was launched on January 3, 2013. Therefore, it has been in the market for a sufficiently long period of time to judge its performance. It’s one of the better-performing mid-cap funds. It follows the Nifty Midcap 150 TRI.
Returns of lump sum
If an investor put a one-time amount of Rs 10,000 in the fund, it would have generated a total value of Rs 11,810 in 3 months, Rs 12,911 in 6 months, Rs 14,763 in 1 year, Rs 17471 in 2 years, 19,824 in 3 years, 38,360 in 5 years and 76,746 in 10 years. The above calculations are based on the NAV dated August 13, 2024. The annualised returns for 1-year, 2-year, 3-year, 5-year and 10-year periods are 47.16%, 32.08%, 25.60%, 30.81% and 22.58% respectively.
Returns on SIP
Now let’s turn to an SIP (Systematic Investment Plan) of Rs 1,000 a month. Continued 1, 2, 3, 5 and 10 years ago the SIP would have generated Rs 15,309, Rs 35,574, Rs 58,156, Rs 1,34,519 and Rs 4,12,188 respectively. In both the calculations for SIP and lump sum returns, the paise element has not been considered.
Fund composition
Kotak Emerging Equity Fund has invested 6.08% of its resources in giant stocks (category average: 5.05%), 28.44% in large stocks (category average: 36.74%), 63.93% in midcap stocks (category average: 55.97%) and 1.55% in smallcap stocks (category average: 4.91%).
Sectors and stocks
Going by top sectors the investments were made in industrials (18.14%), materials (18.09%), consumer discretionary (16.77%), financial (13.66%), technology (12.54%) and healthcare (8.3%).
The top stocks selected for investment included Dixon Technologies, Blue Star, Thermax, Persistent Systems, Mphasis, Supreme, Oil India, Oberoi Realty, Bharat Forge, Oracle Fin, Coromandel Intl, Schaeffler India, Samvardhana Motherson, Ipca Laboratories.
Lower volatility
One of the remarkable characteristics is the lower volatility of this fund. It has also delivered higher returns for the degree of risk undertaken during the course of business.
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Mutual funds are one of the time-tested instruments of long-term wealth creation. SIP in a performing equity-oriented fund strikes that balance of growth and relatively less risk that many investors covet. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
