I want to invest Kotak mutual fund. Can you please tell me which fund can give high returns?Asked
The decision to invest in a particular mutual fund must only be made after giving due consideration to parameters like risk appetite, investment horizon, financial objective, etc.
There are many schemes under Kotak Mutual Fund like Kotak Midcap Fund - Regular - Growth, Kotak Monthly Income Plan - Regular - Growth, Kotak Emerging Equity Scheme - Regular - Growth, Kotak Select Focus Fund - Regular - Growth, etc. In order to facilitate better comparison, I have condensed various factors like risk and return of each of these funds in the following table:
Thus, we see that in terms of risk, Kotak Midcap Fund - Regular - Growth, Kotak Emerging Equity Scheme - Regular - Growth and Kotak Select Focus Fund - Regular - Growth are equivalent. However, returns generated by Kotak Midcap Fund - Regular - Growth have consistently been higher. If you do not wish to take as much exposure to risk and require monthly returns, you may invest in Kotak Monthly Income Plan - Regular - Growth.
Most of these funds have underperformed the benchmark in the very short run, i.e., for a period of one year. However, all of them have outperformed their benchmark for a period of 3 years, 5 years and even 10 years. This indicates that the ideal time horizon for investment in any of these funds is 3+ years.
Hope this helps.