Kotak Standard Multicap Fund: Fund review
When being well-diversified pays off
The very structure of multi-cap schemes allows investments in companies of all sizes is an attractive proposition in present market conditions. Among multi-cap schemes, Kotak Standard Multicap is a distinguished performer. Three factors work in the scheme’s favour: In comparison with its peers, it has a low expense ratio. Second, it is the scheme’s performance which stands out. In the past five-year and 10-year periods, the scheme has given 12.1% and 13% returns respectively, while the average returns of its peers over the same periods are 9% and 11% respectively.
Third, in terms of composition, the scheme is welldiversified in large and midsized companies. Close to 77% of the scheme’s portfolio is in large-sized companies, which helps mitigate volatility in the scheme’s returns.
Portfolio change (Past 6 months)
|New Entrants||Complete exits||Increase in allocation|
|IndusInd Bank||Bharat Financial Inclusion||GAIL|
|Sun Pharmaceuticals||Ultratech Cement|
|Laurus Labs||Cadila Healthcare|
|Avenue Supermarkets||Interglobe Aviation|
Returns (in %)
|Period||CAGR Return||SIP CAGR Return||Equity Multicap AVG Return (%)|
Returns peer comparison (in %)
|Kotak Standard Multicap Fund||12.57||9.00||12.16|
|Axis Focused 25 Fund||15.91||12.68||13.98|
|Franklin India Focused Equity Fund||10.85||6.47||9.89|
Harshvardhan Roongta, CFP, Roongta Securities
This is one of the few schemes which has been a consistent performer across market cycles. The investment style is growth-oriented. Being a multi-cap fund, the fund manager has the liberty to invest in quality companies irrespective of size. A major portion of the portfolio is in largecaps which provides relative stability from volatility. Investors looking for a quality multicap fund can choose this scheme without hesitation.