Kotak Opportunities Fund: Good bet among multi-cap MFs

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.

Kotak Opportunities Fund

HOW HAS THE FUND PERFORMED?

With a 10-year return of 13.82%, the fund has outperformed both the category average (12.75%) and the benchmark return (9.8%).

Growth of Rs 10,000 vis-a-vis category and benchmark

Annualised performance (%) As on 21 March 2017
The fund has outperformed both the index and peers across time periods.

Yearly performance (%) As on 21 March 2017
The fund has been fairly consistent in its outperformance.

BASIC FACTS
DATE OF LAUNCH : 9 Sep 2004
CATEGORY : Equity
TYPE : Multi Cap
AVERAGE AUM : Rs 1,236.14 cr
BENCHMARK : Nifty 500 Index

WHAT IT COSTS
NAVS*
GROWTH OPTION : Rs 100.34
DIVIDEND OPTION : Rs 26.13
MINIMUM INVESTMENT : Rs 5,000
MINIMUM SIP AMOUNT : Rs 1,000
EXPENSE RATIO^ (%) : 2.58
EXIT LOAD : 1% for redemption within 365 days
*As on 21 Mar 2017 ^As on 30 Sep 2016

Fund manager : Harsha Upadhyaya
Tenure: 4 years and 6 months
Education: B.E, PGDM, CFA

WHERE DOES THE FUND INVEST?

HOW RISKY IS IT?
The fund boasts a superior risk-reward profile compared to many peers.

Wherever not specified, data as on 28 Feb 2017. Source: Value Research

SHOULD YOU BUY?
This fund has a track record of consistent outperformance. It takes a flexi-cap approach, but with a clear large-cap focus—65-70% of the portfolio. The fund adopts a pure bottom-up stock selection approach with no sectoral constraints.

The fund manager prefers companies that promise consistent cash flows, have a proven business model and an efficient management, and are available at a reasonable price. He seeks to limit risk through diversification, with a portfolio comprising around 60 stocks.

The fund limits exposure even in its top picks. Further, within its mid-cap exposure, it puts a heavy emphasis on liquidity. With a proven ability to capture higher market upside and cushion downside better, this is a worthy bet in the flexi-cap segment.