Kotak Standard Multicap Fund: king of multi cap mutual fund category

Kotak Standard Multicap Fund, the biggest fund in the multi cap fund category with an AUM worth Rs 24,297 crore, is the topper in all the parameters. With the freedom to invest across capitalisations, the fund has generated impressive returns for its investors investing lump sum as well as through Systematic Investment Plan.

The scheme was launched in September 2009. The scheme enjoys a much higher alpha than the average alpha of the category in both the three- and five-year periods. A higher alpha means better returns for the investors. In fact, it is the category topper in the three-year period.

Kotak Standard Multicap Fund has significantly outperformed the category and its benchmark index Nifty 200 TRI in one-, three-, five- and seven-year periods. The fund has a higher Sharpe ratio both in three- and five-year periods, compared to the category average and the index. These ratios tell us that the fund is beating the category as well as index comfortably.


The scheme’s SIP performance is worth a close look as well. The scheme has given the highest annualised SIP returns in five-year and seven-year periods. (See ‘Fund Performance’ table below)

The impressive performance of the scheme can be attributed to the fund manager Harsha Upadhyaya who has been managing it since August 2012. The scheme invests around 70 per cent of its portfolio in large cap stocks. It has 38 per cent of its portfolio in financial sector, followed by 15 per cent in energy sector.

The scheme has increased its allocation to private banks from 18.94 per cent in September last year to 25.55 percent in April 2019. The scheme has reduced its exposure to housing finance companies from 4.65 per cent to 1.47 per cent in April by selling the shares of Housing Development Finance Corporation (HDFC).

Kotak Standard Multicap Fund managed to fare well even in the bear phases. The scheme has a downside ratio of 86. Downside Ratio of less than 100 indicates that the fund lost less than the benchmark in periods of negative returns or when the benchmark was in red.

In short, if you are looking for a good multi cap fund to achieve your long-term financial goals, you may consider investing in Kotak Standard Multicap Fund.

Fund Performance
Scheme Name	1-Yr	3-Yr	5-Yr	7-Yr
Kotak Standard Multicap Fund	12.18	16.20	16.33	19.78
Category Average	4.57	11.95	11.99	15.90
Benchmark Index- NIFTY 200 - TRI	8.92	14.36	11.91	15.65
SIP returns
Kotak Standard Multicap Fund	12.64	11.11	13.20	17.81
Category Average	5.43	6.65	8.22	11.05

Returns in %

Ratio Comparison
	3-year			5-year
	Fund	Category	Index	Fund	Category	Index
Alpha	2.27	-1.48	-	4.11	0.70	-
Sharpe Ratio	1.00	0.71	0.84	0.93	0.74	0.65
Beta	0.95	0.95	-	0.97	0.99	-
Standard Deviation	12.72	13.39	13.11	13.76	15.23	13.73
Upside ratio	100	92	100	106	99	100
Downside ratio	86	100	100	83	94	100

Data as on June 03, 2019