Kotak Mahindra Asset Management Company Limited looks after the asset management business of the Kotak Mahindra Group which was established in 1985.

The Asset Management Company is a wholly owned subsidiary of Kotak Mahindra Bank Limited. The fund house started operations in December 1998 and offers a variety of schemes to its investors.

Kotak Mahindra Mutual Fund Fact Sheet

Fund House Kotak Mahindra Asset Management Company Limited
Commencement of Operations December 1998
Sponsor Kotak Mahindra Bank Limited
Group Establishment 1985
Coverage 80 cities with 84 branches
Managing Director Mr Nilesh Shah
CEO of Sponsor Mr Uday S Kotak
Chief Operations Officer Mr R Krishnan
Compliance Officer Ms Jolly Bhatt
Chief Investment Officer- Equity Mr Harsha Upadhyaya

The fund house’s vision is to be a responsible player in our country’s mutual fund space, always trying to give best in class products across investor lifecycle.

In their years of existence, they have provided a wide range of investment products across asset classes with varying risk parameters that cater to the needs of various segments of clients.

Overall Performance Of Kotak Mahindra Mutual Funds

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On the basis of percentage growth in QAAUM, Kotak Asset Management Company is among the fastest growing Mutual Fund houses.

The QAAUM which stood at Rs.1,24,691 crore for the quarter of 2018 has seen growth of around 35% YoY and 270% in the past 3 years.

This fund house continues to be the 7th largest fund house in India in terms of QAAUM. Market share in QAAUM has increased to 5.41% from 3.7%, 3 years back.

The AAUM of the fund house for FY 2018 was Rs 115,399 crore against Rs 77,091 crore in FY 2017.

Consequently, the overall revenue from operations grew by 75% to Rs 502.0 crore from Rs 286.1 crore. The overall cost grew to Rs 393.0 crore in FY 2018 against Rs 232.6 crore in FY 2017, a growth of 70%.

Hence, the overall PBT has increased to Rs 124.5 crore in FY 2018 compared to Rs 58.6 crore in FY 2017.

There has been a huge growth in the discretionary portfolio management activity during FY 2018. The fund house ended FY 2018 with discretionary AUM of Rs 3,761.9 crore against Rs 1,439.8 crore as on 31st March 2017.

Asset Under Management Growth (In Crores)                                       

Years Equity AUM Debt AUM
FY 2014 3,107 32,582
FY 2015 6,450 32,137
FY 2016 13,666 41,079
FY 2017 19,922 57,169
FY 2018 44,475 70,924

 Financial Performance (In Crores)

Financials FY 2018 FY 2017
Total Income 518.9 291.2
PBT 124.5 58.6
PAT 81.2 38.2

Key People at Kotak Mutual Funds

1. Uday S. Kotak

He is the CEO of the Sponsor, which is Kotak Mahindra Bank. He has an experience of over 26 years, in the field of financial services.

Mr. Kotak is a commerce graduate and completed his post-graduation from Jamnalal Bajaj Institute of Management Studies Mumbai.

2. Nilesh Shah

Mr. Shah is the Managing Director of Kotak Mutual Funds and has over 25 years of experience in Financial and Capital Markets. He previously help important positions in Axis Capital, Franklin Templeton, ICICI Prudential Asset Management and ICICI Securities.

3. R. Krishnan

Mr. R. Krishnan is the Chief Operations Officer and has over 19 years of experience. He is a certified Chartered Accountant and has handled major assignments like the US GAAP implementation.

Fund Managers

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Mr. Harsha Upadhyaya

Mr. Harsha Upadhyaya manages 3 funds of the fund house. He is the Chief Investment Officer for Equities. He has approximately two decades of rich experience spread over Equity Research and Fund Management.

Mr. Harsha is a Bachelor of Engineering in Mechanical from National Institute of Technology, Suratkal, and a Post Graduate in Management specializing in Finance from Indian Institute of Management, Lucknow. He is also a Chartered Financial Analyst from the CFA Institute.

His prior experience has been with companies such as DSP BlackRock, UTI Asset Management, Reliance Group, and SG Asia Securities.

Ms. Lakshmi Iyer

Lakshmi is the Chief Investment Officer for fixed income and heads the product team at the fund house. She has been with the organization since 1999.

She has done her MBA in Finance from Narsee Monjee Institute of Management Studies.

Prior to Kotak, she worked with Credence Analytics Pvt Ltd.

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Mr. Harish Krishnan

Mr. Harish Krishnan manages 3 funds in the AMC.

He is the Senior Vice President in the company and manages equity schemes of the fund house. He has a decade of experience spread over Equity Research and Fund Management.

He is a Bachelor of Technology in Electronics & Communications from Government Engineering College, Trichur. He also holds a Post Graduate in Management from Indian Institute of Management, Kozhikode and is a Chartered Financial Analyst from the CFA Institute.

Prior to joining Kotak Mutual Fund, he was based out of Singapore and Dubai, managing Kotak’s offshore funds. He has also worked at Infosys Technologies Ltd.

Mr. Abhishek Bisen

Mr. Abhishek Bisen manages 9 funds in the fund house and is the Vice President. He has been associated with the company since October 2006 and manages debt schemes of the fund house.

He has done B.A in Management and an MBA in Finance.

Prior to joining Kotak fund house, he was working with Securities Trading Corporation Of India Ltd. He has been awarded twice as one of the Highly Commended Investors in Indian Rupees Bonds from the Asset magazine Hong Kong.

Mr. Pankaj Tibrewal

He is a Vice President in the company and manages equity schemes of the fund house.

He is a Graduate in Commerce from St. Xavier’s College, Kolkata and also has a master’s degree in Finance from Manchester University.

He has been associated with the mutual fund industry since 2003 and has managed many debts and equity funds.

He has been a part of the organization since January 2010. He earlier used to work with Principal Mutual Fund.

Best Kotak Funds You Can Consider Investing In
Fund Name 1Y 3Y 5Y Expense Ratio Turnover Ratio Category Risk
Kotak Emerging Equity Scheme - Direct - Growth 0.29% 12.38% 18.02% 0.7% 19% Equity
(Mid Cap)
Moderately High
Kotak Low Duration Fund - Direct - Growth 8.5% 8.44% 9.06% 0.32% NA Debt
(Low Duration)
Moderate
Kotak Standard Multi Cap Fund - Direct - Growth 10.76% 15.88% 16.61% 0.79% 14% Equity
(Multi Cap)
Moderately High
Kotak Equity Savings Fund - Direct - Growth 6.69% 9.15% NA 1.37% NA Hybrid
(Equity Savings)
Moderately High

1.Kotak Emerging Equity Fund

Key Information

AUM Rs 3,425.16 Crores (as on 31st Jan 2019)
NAV (Direct Growth) Rs 38.23 (as on 31st Jan 2019)
Minimum SIP Investment Rs 1000
Expense Ratio (Direct) 0.80 %
Fund Type Mid Cap Equity
Risk Moderately High
Benchmark NIFTY Free Float Midcap
Fund Manager Mr. Pankaj Tibrewal
Exit Load If redeemed bet. 0 Year to 1 Year; Exit Load is 1%
Fund Started 30th March 2007

Returns (As on 31st January 2019)

Duration Fund Returns Benchmark Returns
Since Inception 11.33 % 12.56 %
1 Year Return -12.51 % -17.88 %
3 Year Return 13.07 % 11.90 %
5 Year Return 23.40 % 18.84 %

Investment Objective

The investment objective of the fund is to generate long-term capital appreciation from a portfolio of equity and equity-related securities, by investing mainly in mid and small cap companies.

Sector Allocation      

Sectors Kotak Emerging Equity Fund Benchmark
Financial Services 19.33 % 27.43 %
Industrial Manufacturing 16.32 % 5.25 %
Consumer Goods 9.72 % 14.59 %
Automobile 6.89 % 7.61 %

Why Invest in Kotak Emerging Equity Fund?

This midcap fund has performed better than its benchmark in 1, 3 and 5 year period. It has a low expense ratio for its direct option of investment and has a good track record since 2007.

It has majorly invested in sectors like financial services, industrial manufacturing etc.

Top Holdings

Company Name Sector % Allocation
The Ramco Cements Ltd Cement 3.60
Schaeffler India Ltd Industrial Products 3.34
RBL Bank Ltd Banks 3.26
Bharat Financial Inclusion Limited Finance 3.18
Atul Ltd. Chemicals 3.12
P I Industries Ltd Pesticides 3.05
Supreme Industries Limited Industrial Products 2.89
Thermax Ltd. Industrial Capital Goods 2.70
Solar Industries India Limited Chemicals 2.63
Coromandel International Ltd. Fertilizers  

2.50

 2. Kotak Low Duration Fund

AUM Rs 4,744.12 Crores (as on 31st Jan 2019)
NAV (Direct Growth) Rs 2338.8072 (as on 31st Jan 2019)
Minimum SIP Investment Rs 1000
Expense Ratio (Direct) 0.31 %
Fund Type Debt
Risk Moderate
Benchmark NIFTY Low Duration Debt Index
Fund Manager Mr. Deepak Agarwal
Exit Load Nil
Allotment Date 6th Mar 2008

Returns (as on 31st January 2019)

Duration Fund Returns Benchmark Returns
Since Inception 7.73 % 8.51 %
1 Year Return 7.60 % 7.67 %
3 Year Return 7.87 % 7.56 %
5 Year Return 8.51 % 8.11 %

Investment Objective

The primary objective of the fund is to generate income through investment mainly in low duration debt & money market securities.

There is no guarantee that the investment objective of the fund will be achieved.

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Sector Allocation

Sectors Kotak Low Duration Fund
Debentures and Bonds 88.78 %
Commercial Papers/ Certificate of Deposits 9.62 %
Net Current Assets 1.60 %

Why Invest In Kotak Low Duration Fund?

This is a debt fund and has performed slightly better than its benchmark in the 3 and 5 period. It has a very low expense ratio of 0.31% for its direct option of investment and has a good track record since 2008.

It has majorly invested in sectors like debentures and bonds. There is no exit load for the investor if he wants to withdraw his /her investment.

Top Holdings

Debt Rating % Allocation
S D Corporation Pvt. Ltd. ( DSRA Guarantee from Shapoorji Pallonji and Company Private Limited) CARE AA(SO) 7.25
Sarvoday Advisory Services Pvt. Ltd. ( Secured by Equity shares of JSW Energy Ltd. and JSW Steel Ltd. ) BRICKWORK BWR A(SO) 5.87
Manappuram Finance Ltd. ICRA AA- 5.27
Edelweiss Commodities Services Ltd. ( Put options on ECL Finance) ICRA AA 4.21
Rent A Device Trust ( ) ICRA AAA(SO) 4.03
Dewan Housing Finance Corporation Ltd. CARE AAA 3.87
Aasan Corporate Solutions Pvt. Ltd. ( Guaranteed by a Piramal Group of Company and Shree Krishna Trust ) ICRA AA-(SO) 3.69
Reliable Devices Trust ( ) ICRA AAA 3.64
ECL Finance Ltd. CRISIL AA 3.60
Edelweiss Housing Finance Limited ICRA AA 2.98

3.Kotak Standard Multicap Fund

Key Information

AUM Rs 21,637.57 Crores (as on 31st Jan 2019)
NAV (Direct Growth) Rs 34.871 (as on 31st Jan 2019)
Minimum SIP Investment Rs 500
Expense Ratio (Direct) 0.96 %
Fund Type Multi-Cap Fund
Risk Moderately High
Benchmark NIFTY 200
Fund Manager Mr. Harsha Upadhyaya
Exit Load If redeemed bet. 0 Year to 1 Year; Exit Load is 1%
Allotment Date 11th Sep 2009

Returns (as on 31st January 2019)

Duration Fund Returns Benchmark Returns
Since Inception 13.50 % 10.50 %
1 Year Return -3.56 % -3.95 %
3 Year Return 14.99 % 14.06 %
5 Year Return 19.37 % 14.81 %

Investment Objective

The investment objective of the fund is to generate long-term capital appreciation from a portfolio of equity and equity-related securities, generally focused on a few selected sectors.

However, there is no guarantee that the objective of the scheme will be realized.

Sector Allocation

Sectors Kotak Standard Multi-Cap Fund Benchmark
Financial Services 35.70 % 34.28 %
Energy 14.10 % 13.31 %
Information Technology 8.48 % 12.36 %
Consumer Goods 7.33 % 13.31 %

Why Invest In Kotak Standard Multicap Fund?

This is a multi-cap fund and has performed better than its benchmark since its inception. It has a low expense ratio of 0.96 % for its direct option of investment and has a good track record since 2009.

It has majorly invested in sectors like financial services and energy.

Top Holdings

Company Name Sector % Allocation
Reliance Industries Ltd. Petroleum Products 7.09%
HDFC Bank Ltd. Banks 7.03%
ICICI Bank Ltd. Banks 6.49%
Axis Bank Ltd Banks 5.02%
Larsen And Toubro Ltd. Construction Project 4.86%
Infosys Ltd. Software 4.76%
Tata Consultancy Services Ltd. Software 3.72%
State Bank Of India Banks 2.78%
RBL Bank Ltd Banks 2.64%
Petronet LNG Ltd. Gas 2.63%

4.Kotak Equity Savings Fund

Key Information

AUM Rs 2,262.98 Crores (as on 31st Jan 2019)
NAV (Direct Growth) Rs 14.26 (as on 31st Jan 2019)
Minimum SIP Investment Rs 1000
Expense Ratio (Direct) 1.45 %
Fund Type Hybrid Fund
Risk Moderately High
Benchmark 75% of Nifty 50 Arbitrage index and 25% in Nifty 50
Fund Manager Mr. Deepak Gupta & Mr. Abhishek Bisen
Exit Load If redeemed up to 10% of the initial investment amount bet. 0 Year to 1 Year; Exit Load is Nil else 1 % within 1 Year
Allotment Date 13th Oct 2014

 Returns (as on 31st January 2019)

Duration Fund Returns Benchmark Returns
Since Inception 7.87 % 6.85 %
1 Year Return 3.20 % 3.68 %
3 Year Return 8.42 % 7.49 %

Investment Objective

The investment objective of the fund is to generate capital appreciation and income by predominantly investing in arbitrage opportunities in the cash and derivatives segment of the equity market, and enhance returns with a moderate exposure in equity & equity related instruments.

There is no assurance or guarantee that the investment objective of the fund will be achieved.

Sector Allocation

Sectors Kotak Equity Savings Fund
Bank 13.27 %
Debentures and Bonds 12.52 %
TREP and Term Deposits and Rev Repo 12.09 %
Software 10.10 %

Why Invest In Kotak Equity Savings Fund?

This is a hybrid fund and has performed slightly better than its benchmark since inception and 3-year returns.

It has a good track record since 2008 and 10% of the initial investment can be withdrawn by investors without any exit load. It has majorly invested in banks and debentures and bonds.

Top Holdings

Company Name Sector % Allocation  
Reliance Industries Ltd. Petroleum Products 2.20
HDFC Bank Ltd. Banks 1.89
Tata Consultancy Services Ltd. Software 1.84
Hindustan Unilever Ltd. Consumer Non-Durables 1.53
Bajaj Finance Limited Finance 1.40
Infosys Ltd. Software 1.40
HDFC Ltd. Finance 1.33
Bharat Financial Inclusion Limited Finance 1.18
ICICI Bank Ltd. Banks 1.00
Titan Company Ltd. Consumer Durables 0.88

Conclusion

Kotak Mahindra Asset Management Company is one of the oldest mutual fund houses with a good track record.

It manages a huge value of Assets Under Management and has reputed fund managers to take care of the investment done by the funds. It caters to people with different risk profiles by offering a variety of products in the mutual fund space.

Happy Investing!

Disclaimer: The views expressed in this post are that of the author and not those of Groww