This fund manager with AUM of Rs 38000 cr reveals his secret of picking stocks for past 11 years

Wealth creation often involves a journey with ups and downs, demanding discipline and commitment. If you had invested Rs 1 lakh on 1st January 2013 in the Kotak Flexicap Fund, your investment would have grown to approximately Rs 4.7 lakh as of 19th June 2023.

Kotak Flexicap Fund is the largest open-ended equity fund in India with an Asset Under Management (AUM) of over Rs 38,000 cr as on 31st May 2023. Harsha Upadhyaya has been managing the fund since 4th August 2012.

The AUM of the fund has grown steadily over the years, even in tough times like the Taper Tantrum, Trade War, Demonetization, and Covid. The fund has a proven track record of delivering good returns.


In an interview with ETNow, Harsha Upadhyaya discusses the remarkable growth and strategies of the Flexicap Fund, which had recently surpassed a colossal asset under management (AUM) of Rs 38,000 crore.

Kotak MF shared a report titled "an elephant can dance” – an analogy that represented the substantial size of the Flexicap Fund, likening it to an elephant, and the dance symbolized its ability to navigate the dynamic market successfully.

The fund strives to focus on the sectors that have the potential to perform in the ongoing market cycle across market capitalization.

Harsha responded with eloquence, highlighting that despite the fund's significant AUM, they remained steadfast in adhering to their investment discipline.

He proceeded to delve into the investment philosophy that had proven to be the bedrock of their success, generating fruitful returns for investors throughout various market cycles.

Harsha emphasized their focus on identifying opportunities with compounding characteristics. They diligently sought out businesses that demonstrated scalability and possessed a competitive advantage within their respective sectors.

Additionally, they evaluated company managements with a keen eye for those who had a track record of delivering growth to shareholders while aligning with minority shareholders.

In addition to these factors, the Flexicap Fund placed great emphasis on the cash flow generation and capital efficiency of the companies in which they invested.

They believed that a disciplined approach to valuations was paramount, only including stocks in the portfolio if the valuations were deemed fair.

Once selected, the fund prefers to adopt a buy-and-hold strategy, aligning with a long-term investment horizon.

Harsha proudly highlighted that this disciplined approach had been the cornerstone of their investment philosophy for the past 11 years, successfully guiding the Flexicap Fund through various market cycles.

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