How to Grab the Multiple Benefits of Kotak Standard Multicap Fund?

Kotak Standard Multicap Fund (G) is a highly appreciated multi-cap fund which owns a corpus of nearly Rs 20,000 crore as on 31st May 2018. The fund was earlier known as Kotak Select Focus Fund. The recent changes in the name were due to the categorisation of mutual fund schemes by SEBI. By making the fund more specific for the investors. It didn’t change the investment strategy of the scheme because according to the definitions of SEBI, multi-cap funds have the freedom to invest across various market caps companies. This allows the fund manager to grab the benefit of rising and fall in any particular category. Multi-cap funds or diversified equity funds are chosen by many investors due to its ability to generate higher risk at the expense of moderate risk. Kotak Standard Multicap Fund Fund (G) This multi-cap fund has shown great resistance to the market volatility because of high exposure towards large-cap companies. Since the fund has the freedom to allocate the corpus in various category of stocks as it has provided consistent returns and less volatility to the investors. In the equity market that has been unpredictable, it requires an experienced fund management staff to generate beneficial returns. The management is provided by Kotak Mutual Fund, which is among the top mutual fund asset management companies in the country. Performance in the Past The fund has performed dramatically well compared to its peers and benchmarks. In the equity market that has been on a downfall recently, the majority of equity schemes have been unable to keep up with the market conditions and have provided negative returns. But Kotak Select Focus Fund or Kotak Standard Multicap Fund has delivered positive returns well above its benchmark NIFTY 200 TRI. In the last 5 years, the fund rewarded the investors with 21.3% annualised returns while the benchmark returns are 14.6%. In the last 2 years, it has generated 15.9% annualised return. It was launched in September 2009 and didn’t faced the depression in 2008, since then it has provided an annualised return of 14.52%. Fund Managers The fund is managed solely by Mr Harsha Upadhyaya who is a senior fund manager at Kotak Mahindra Mutual Fund. He has been managing the fund since August 2012. He is a B.E. In Mechanical from IIT Suratkal, PGDM from IIM Lucknow and CFA from CFA Institute, USA. He is a very experienced asset manager and has managed many successful funds in the past. Before joining Kotak Mahindra Mutual Fund, he was associated with DSP BlackRock Investment Managers Ltd and UTI Mutual Fund. Portfolio Selection The average market capitalisation of Rs 1,08,437 crore is allocated mainly in the large-cap companies since the inception of this scheme. Though it is a multi-cap fund, it prefers to stay highly oriented towards large-cap companies. Approximately 80% of the corpus is allocated in large-cap companies which is the reason why it has been able to provide stable and consistent returns. Due to its portfolio allocation, it can be termed as a large-cap fund with an ability to shape itself concerning market conditions. A tiny proportion (0-2%) is invested in small-cap companies. The companies of the finance sector are mostly chosen by the fund manager. Other sectors like oil & gas, automotive, engineering, technology and cement sectors are also selected. The fund is suitable for the investors who seek long-term capital gain by investing in diversified companies as well as large-cap companies. The high influence towards large-cap companies is the reason why it has been chosen by the majority of investors. The fund accepts SIP as well as lumpsum investment.