Kotak Emerging Equity mutual fund needs to regain strong footing; should you stay invested?

ET Wealth collaborates with Value Research to analyse top mutual funds. We examine the key fundamentals of the fund, its portfolio and performance to help you make an informed investment decision.

BASIC FACTS
DATE OF LAUNCH
30 MAR 2007
CATEGORY

EQUITY
TYPE
MID CAP
AUM*
Rs.39,685 crore
BENCHMARK
NIFTY MIDCAP 150
TOTAL RETURN INDEX

WHAT IT COSTS
NAV**
GROWTH OPTION
Rs.110.02
IDCW
Rs.60.43
MINIMUM INVESTMENT
Rs.100

MINIMUM SIP AMOUNT
Rs.100

EXPENSE RATIO# (%)
1.47
EXIT LOAD
For units in excess of 10% of investment, 1% will be charged for redemption within 365 days.

*AS ON 31 MAR 2024
**AS ON 30 APR 2024
#AS ON 31 MAR 2024

FUND MANAGER
ATUL BHOLE (PIC) /ARJUN KHANNA
3 MONTHS / 2 YEARS, 1 MONTH

Recent portfolio changes
New entrants
Oil India (Feb). Fortis Healthcare, Global Health, JB Chemicals & Pharmaceuticals, REC (Mar). Recent portfolio changes
Complete exits
Apollo Hospitals Enterprise, City Union Bank, FSN E-Commerce Ventures, Jindal Steel & Power, Lux Industries, Motherson Sumi Wiring India, Tata Consumer Products (Feb). Amara Raja Energy & Mobility, Godrej Agrovet, Laurus Labs (Mar).

Should You Buy
This fund currently retains a modest presence in both large and small caps, apart from its mid-cap tilt. It has recenty seen a change of guard. However, the fund’s core approach remains unchanged, with focus on quality businesses boasting high opportunity size and growth visibility, low leverage, high return rations and cash flows. To align with the changing economic and market dynamics, the fund intends to selectively increase exposure to old economy sectors of energy, utility and infrastructure. Boasting an impressive longterm track record, its performance has taken a big hit in recent years, led mainly by a shift in market preference towards value stocks. The new fund manager at its helm will need time to put the fund back on a strong footing.