Kotak Select Focus Fund is one of the most dynamic multi cap funds in the market today. With returns that are competitive with other large-cap funds and an experienced fund manager, what does the future of this fund look like? Read the full review to find out.
Investment Objective of Kotak Select Focus Fund
To generate long-term capital appreciation from a portfolio of equity and equity related securities, generally focused on a few selected sectors.
|Absolute returns (%)||30.15||15.14|
Kotak Select Focus Fund Review
Kotak Select Focus Fund has sizeable exposure to large-cap stocks.
The fund has performed consistently and has been able to generate considerable returns over the different time period.
Due to focus on bottom-up stock selection methodology, the fund has not only outperformed its benchmark across multi-trailing time period but has also outperformed its category funds by a considerable margin generating 30.15% and 15.14% returns over 1-year and 3-year period respectively.
The fund endeavors to identify sectors that are likely to do well over the medium term though and continues to have a higher share of domestic businesses that are lucrative as compared to export/ global businesses on account of better earnings growth.
The top overweight sectors in the fund are Cement, Financials and Oil & Gas. The government’s focus on reviving consumption expenditure and infrastructure related spend will create positive demand scenario for companies in the portfolio.
Key underweight sectors include Information Technology and Healthcare where the earnings momentum is weak and business headwinds still persist.
The open-ended fund follows the bottom-up stock selection approach and picks fundamentally sound companies that are trading at a substantial discount from their intrinsic value with an objective of long-term capital appreciation over a business cycle.
Thus, the portfolio has healthy historical earnings growth when compared to category and has a rich valuation in terms of forward-looking cash flow metrics and prospective earnings basis.
The fund manager seeks to maintain a balanced portfolio (beta close to 1), which ensures that the portfolio is not carried away in adverse market movement and any gain in the portfolio can be attributed only due to stock selection and not due to market timing.
The fund is having a higher allocation to giant and large cap thereby pulling SMID/Large ratio to 0.13 times thereby resulting in a fairly stable fund as reflected in the standard deviation of 13.76%.
Kotak Select Focus Fund Manager
Harsha Upadhyaya is the Head of equity investments for Kotak Asset Management Company and has been the fund manager for Kotak Select Focus since August 2012.
Prior to joining Kotak, Upadhyaya was the Senior Vice President/Fund Manager at DSP BlackRock Investment Managers Ltd.
He has been the fund manager with UTI Asset Management Company as well and has over 15 years of experience in the fund management industry.
Mr Upadhyaya holds a Post-Graduate Diploma in Management (PGDM) from IIM, Lucknow and has a CFA charter conferred by the CFA Institute, USA.
Upadhyay has a sharp eye that enables him to pick stocks at the right time that grows to become multi-bagger.
To look at some of the best performing funds from every category, check out Groww 30 best mutual funds to invest in 2018.