Kotak AMC and Mirae Asset Mutual Fund are few of the most respected fund houses in India.
But investors at various times are confused before opting for particular funds in the same category. One such confusion also arises in choosing multi-cap funds.
Kotak Standard Multicap Fund and Mirae Asset India Equity Fund are two of the most renowned multi-cap funds offered in the market. As we all know, multi-cap funds are those funds which have exposure across large cap, mid cap, small caps and debt as well.
In this article we will highlight the key differences about these two funds i.e Kotak Standard Multicap Fund and Mirae Asset India Equity Mutual Funds.
The purpose is that after the end of the article we are fully sure about the best multi-cap fund suited for our needs.
Let’s begin!
In this article
Kotak Standard Multicap Fund – Direct – Growth
Investment Objective
The investment objective of this fund is to generate long term capital appreciation by hunting for equity and equity related securities in few selected sectors.
Key Details
| Particulars | Details |
| Fund House | Kotak Mutual Fund |
| Scheme | Open-Ended |
| Class | Equity |
| Scheme Benchmark | NIFTY 200 TRI |
| Category | Multi Cap |
| Inception Date | 01 – Jan – 2013 |
| Total Fund Size (In crores) | 21,718 crs |
| Fund Manager | Harsha Upadhyaya |
| Availability of SIP | Yes |
| Minimum Initial Investment | 5000/- |
| Minimum SIP Amount | 500/- |
| Expense Ratio | 0.92% |
| Risk | Moderately High |
| CEO | Mr. Nilesh Shah |
Equity Break-Up
| Fund Name | 1Y | 3Y | 5Y | Expense Ratio | Turnover Ratio | Category | Risk |
|---|---|---|---|---|---|---|---|
| Kotak Standard Multicap Fund Direct Growth | -2.92% | 10.44% | 13.65% | 0.76% | 14% | Equity
(Multi Cap) |
Moderately High |
Fund Managers
Mr. Harsha Upadhyaya
Mr. Upadhyaya is the Chief Investment Officer of Equity at Kotak Mahindra AMC. He had joined the fund house in 2012. He has immense experience in equity research and fund management.
Prior to joining the firm, he has worked across firms such as DSP Blackrock, UTI Asset Management, Reliance Group and SG Asia Securities.
Mr. Upadhyaya has strong academic credentials. He is a CFA charter holder, MBA in Finance from IIM Lucknow and a Mechanical Engineer degree from NIT, Suratkal.
Other funds managed by Mr. Harsha Upadhyaya
- Kotak Equity Opportunities Fund
- Kotak India Growth Fund Series 4
Mirae Asset India Equity Fund – Direct
Investment Objective
The investment objective of the fund is to generate long term capital appreciation for the investors.
The fund managers achieve this by capitalizing on the potential investment opportunities in the equity and equity related instruments.
Key Details
| Particulars | Details |
| Fund House | Mirae Asset Mutual Fund |
| Scheme | Open-Ended |
| Class | Equity |
| Scheme Benchmark | NIFTY 200 TRI |
| Category | Multi Cap |
| Inception Date | 01 – Jan – 2013 |
| Total Fund Size (In crores) | 10,128 crs |
| Fund Manager | Neelesh Surana, Harshad Borawake |
| Availability of SIP | Yes |
| Minimum Initial Investment | 5000/- |
| Minimum SIP Amount | 1000/- |
| Expense Ratio | 0.79% |
| Risk | Moderately High |
| CEO | Mr. Swarup Anand Mohanty |
Equity Break-Up
| Fund Name | 1Y | 3Y | 5Y | Expense Ratio | Turnover Ratio | Category | Risk |
|---|---|---|---|---|---|---|---|
| Kotak Standard Multicap Fund Direct Growth | -2.92% | 10.44% | 13.65% | 0.76% | 14% | Equity
(Multi Cap) |
Moderately High |
Fund Manager
Neelesh Surana
Previously, the head of equities, Mr. Neelesh Surana has risen to the position of Chief Investment Officer and Fund Manager at Mirae Asset Global Investments (India) Pvt. Ltd.
He is also the head of equity research and investment function at the firm. In addition to the above responsibilities, Mr. Surana supports the global research function as well as portfolio construction at the Firm.
Prior to joining Mirae Asset Management, he was Senior Portfolio Manager at ASK Investment Managers Ltd. and was responsible for tracking sectors (FMCG, Metals, and Pharma).
Mr. Surana is an MBA in Finance and a B.E. in Mechanical Engineering.
Other Funds managed by Mr. Neelesh Surana
- Mirae Asset Emerging Bluechip Fund
- Mirae Asset Hybrid Equity Fund
- Mirae Asset Tax Saver Fund
2.Harshad Borawake
Mr. Harshad Borawake is the Head of Research division at Mirae Asset Global Investments (India) Pvt. Ltd.
Prior to joining Mirae, he worked in the Equities division (Vice-President) at Motilal Oswal Securities Ltd. for about 10 years. The sectors which he tracked there are Oil & Gas, Logistics and Aviation.
He also worked as an equity research analyst at Capmetrics and Risk Solutions.
Mr. Borawake is a BE in Polymer and also an MBA in Finance.
Kotak Standard Multicap Fund vs. Mirae Asset India Equity Fund
These are the main differences between the two funds
1.Returns
The ideal period for investment in multi-cap fund is between 3 to 5 years. It would be great if we can continue with our investments beyond that period as well.
If we look at the 3 year returns for both the funds, it can be seen that Mirae Asset India Equity Fund delivers higher growth as compared to Kotak Standard Multicap Fund.
Also, the 5 year returns are more or less similar for both the funds. This is where knowing the expense ratio of each fund becomes critical
Therefore, if we have an investment time horizon of 3 years, we can choose either of the funds.
2.Minimum SIP Amount
Though the returns of Mirae Asset India Equity Fund are higher (for 3 year period), the minimum SIP amount of the fund is INR 1000, whereas that of Kotak Standard Multicap Fund is only INR 500 (half of Mirae Asset India Equity Fund).
Therefore, Kotak Standard Multicap will hit the pocket slightly less (when opting for SIP), as compared to Mirae Asset India Equity Fund.
3.Expense Ratio
Most naïve investors get confused about this term.
To explain it in very simple terms, the expense ratio is the amount the fund charges to manage your investment portfolio. This is generally the management and administration fee.
The expense ratio for Kotak Standard Multicap Fund is 0.92% whereas that of Mirae is 0.79%. There seems to be a minor difference between the two, right?
However, the key difference is known when you remain invested in the funds for a long period of time, as well as when the amount in question is substantial.
This is because of the principle of time value of money and compounding effect.
4.Risk
There are various ways of measuring risk. We have segregated risk into various heads for more clarity to the investors.
- Assets Under Management: Returns for funds starts diminishing once the AUM exceeds a certain limit.The AUM for Kotak Standard Multicap fund is more than 21,000 crs whereas that of Mirae Asset India Equity is roughly 10,000 crores.Therefore, we can say that Mirae Asset most probably has more chances of growth than Kotak Standard Multicap fund.
- Holding Analysis: This can be seen by looking at the amount of funds invested in the Top 5 andTop 20 securities. We’re also taking the allocation to a particular sector.
| Fund Name | Top 5 (% Allocation) | Top 20 (% Allocation) | Allocation to Financial Services |
| Kotak Standard Multicap Fund | 33% | 70% | 37.9% |
| Mirae Asset India Equity Fund | 28% | 65% | 34.6% |
Holding Analysis highlights that Kotak Standard Multicap Fund has greater exposure to Top 5 stocks as well as to the financial sector as compared to Mirae Asset India Equity Fund.
Therefore, the Kotak fund in question is slightly more risky than Mirae Asset India Equity Fund.
- Beta: Beta of a fund measures the volatility of a fund as compared to the market. If the beta is equal to 1 means that the fund moves along with the market.If a fund has a beta less than 1, this means that the fund’s volatility is less than that of the market and vice versa.
| Fund Name | Beta |
| Kotak Standard Multicap Fund | 0.96 |
| Mirae Asset India Equity Fund | 0.97 |
This shows that both the funds are less volatile than that of the markets which are good signs for investors.
- Sharpe Ratio
Sharpe ratio measures the return per unit of risk of a particular fund. Higher the Sharpe ratio, better it is. Mirae Asset India Equity Fund has a Sharpe ratio of 0.50 as compared to Kotak’s 0.47. This can be considered more or less equal for investors.
Note: Data for Beta and Sharpe ratio has been taken from respective fund house’s factsheets
Conclusion
Therefore, we should choose the fund that we want to put our money in based on all the details and comparison criteria mentioned above.
We may also check out the company fact sheet if we require more information.
Always remember that investing in a particular fund will depend on what investment criteria you are considering and while both these funds are very good, you need to make the choice of which is the apt fund for YOU.
Happy Investing!
Disclaimer: The views expressed in this post are that of the author and not those of Groww
