On the basis of market caps, mutual funds are divided into large cap, small cap, and mid cap mutual funds. These funds invests predominantly in the companies that fall in their market capital range respectively. Among them, large cap funds are least risky but also yield lesser returns. Mid cap and small cap funds yields superior returns but are very risky at the same time. To solve this problem, SEBI introduced another category named as multicap funds which diversify the assets across the market caps.
Kotak Standard Multicap Fund also falls into the category of such funds and have emerged as the top performing multicap fund for investment.
An Overview of Kotak Standard Multicap Fund
The multicap fund of Kotak Mutual Fund made its debut in the mutual fund space on 11th September, 2009 with a prime objective to provide long term capital gains to the Indian investors by diversifying the assets in a combination of large cap, mid cap, and small cap stocks. The AUM of Kotak Standard Multicap Fund on 30th April, 2019 is Rs. 24,297 Crore which is highest among all the peer competitors in the same category. For a lumpsum investment, an investor is required to invest Rs. 5000 whereas an SIP investment of Rs. 500 is required to begin the investment journey through systematic investment plan. The expense ratio of the multicap fund is 1.80% (as on 30th April, 2019) which is the lowest among other funds.
Investment Philosophy of Kotak Standard Multicap Fund
The fund manager, Mr. Harsh Upadhyaya follows a growth style of investment and invests predominantly in the large cap companies for stable returns. Also, a considerate portion of assets is also allocated in the midcap and small cap stocks for excellent returns. The strategy by far have worked very well for Mr. Upadhyaya. Currently, the scheme invests in 56 stocks of the companies whose growth looks promising in the future.
Sector Allocation of Kotak Standard Multicap Fund
Allocation of the assets in a large number of sectors is again an important reason behind the success. Among different sectors finance, energy, construction, technology, FMCG are the most overweighted, which is a good move by the fund manager as predictions of these sectors achieving success are high. Other sectors are automobile, services, healthcare, energy, textile, chemicals, etc.
In short, the investors’ money is ploughed in all the important sectors of the Indian economy.
Past Performance of Kotak Standard Multicap Fund
The multicap fund of Kotak AMC is rocking the success chart with exceptional returns. The fund has always been a consistent performer over the years. The annualized returns of Kotak Standard Multicap Fund ranges between 15% to 19% in the long run. Furthermore, the scheme has shown excellent recovery every time when hit by the market volatility. Also, according to the current portfolio allocation the scheme is all set to yield high returns in the upcoming years.
Who Should Invest in Kotak Standard Multicap Fund?
Kotak Standard Multicap Fund is the best mutual fund investment for an investor having moderately high risk. Since, the multicap fund diversify the assets largely in large cap stocks therefore, the scheme becomes somewhat less prone towards market risks than the pure midcap and small cap funds.
Moreover, this top recommended mutual fund of Kotak is a suitable option for the investors who are in search of portfolio diversification. The scheme has an excellent track record which makes it a “Must” scheme in the portfolio. Also, the expense ratio of the scheme is lowest of all, which is again an appealing reason to invest in this fund.
Reading so far, you must have known that Kotak Standard Multicap Fund is one of the best SIP plans in India that can surge high profits in the long term. Although, all the important information about the multicap fund has been included in this write-up but if you want to acquire any other information then you may ask our experts at- 9660032889. You can also visit our website www.mysiponline.com for starting the SIP plan in this mutual fund.