Kotak India EQ Contra Fund: Lump sum multiplied 4.7 times in 10 years

Kotak India EQ Contra Fund: Lump sum multiplied 4.7 times in 10 years

Kotak India EQ Contra Fund was launched on July 27, 2005 and has acquired a size of Rs 3,760.4 crore. Its NAV was Rs 155.36 on September 5, 2024. It is marked “Very High” on the risk-o-meter. The expense ratio is 1.88% as compared to a category average of 1.69%.

Contra funds are equity funds and are open-ended. Those investors who are conversant with the broad trends in the market and are not averse to rake selective risks can consider investing and profiting from contra funds. There are well over a dozen contra funds in India from reputable AMCs.

Kotak India EQ Contra Fund Direct Growth

Let’s turn to an investor who puts in Rs 10,000 in this fund. If invested 6 months ago it would have risen to Rs 12,010. The same amount, if invested 1 year ago would have returned Rs 15,216; 2 years ago would have fetched Rs 18,199. If the investor has put Rs 10,000 in the fund 3, 5 and 10 years ago, the fund would have generated Rs 18,873, Rs 31,316 and Rs 47,499 respectively. Invested on July 27, 2005, it would have generated Rs 1,55,362.

SIP returns

The returns for a SIP investor were as follows – a monthly SIP of Rs 1,000 would have amounted to Rs 15,244 in 1 year; 36,014 in 2 years, 58,970 in 3 years, Rs 1,25,150 in 5 years and Rs 3,55,777 in 10 years.

According to Value Research, 98.35% money of the fund has been invested in equities while 1.65% is held as cash and cash equivalent. The sectors where the fund is heavily invested are financial (23.87% of the funds), technology (13.36%), energy & utilities (12.55%), consumer discretionary (12.35%), industrials (11.97%), healthcare (9.26%), consumer staples (8.63%) and materials (5.19%).

The top stocks this fund has chosen include HDFC Bank, ICICI Bank, Infosys, RIL, BSBI, Tech Mahindra, HUL, Mphasis, NTPC, GAIL, Maruti Suzuki, Sun TV Network, Emami, PVR Inox, ONGC.

Volatility

The fund has a Beta of 1%, which indicates that it has mirrored the volatility of the market. Its alpha is, however, 5.99 which indicates that it has outperformed the market in raking in returns.

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 Contra funds capture the imagination of many investors since they make money by going against the conventional wisdom in the market and hence the name.  Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today