The very structure of multi-cap schemes allows investments in companies of all sizes is an attractive proposition in present market conditions. Among multi-cap schemes, Kotak Standard Multicap is a distinguished performer. Three factors work in the scheme’s favour: In comparison with its peers, it has a low expense ratio. Second, it is the scheme’s performance which stands out. In the past five-year and 10-year periods, the scheme has given 12.1% and 13% returns respectively, while the average returns of its peers over the same periods are 9% and 11% respectively.
Third, in terms of composition, the scheme is welldiversified in large and midsized companies. Close to 77% of the scheme’s portfolio is in large-sized companies, which helps mitigate volatility in the scheme’s returns.
Portfolio change (Past 6 months)
New Entrants | Complete exits | Increase in allocation |
IndusInd Bank | Bharat Financial Inclusion | GAIL |
Sun Pharmaceuticals | Ultratech Cement | |
Laurus Labs | Cadila Healthcare | |
Avenue Supermarkets | Interglobe Aviation |
Returns (in %)
Period | CAGR Return | SIP CAGR Return | Equity Multicap AVG Return (%) |
1 Year | 12.57 | 6.90 | 8.05 |
3 Year | 9.00 | 6.62 | 5.87 |
5 Year | 12.16 | 10.15 | 8.57 |
Returns peer comparison (in %)
1-year | 3-year | 5-year | |
Kotak Standard Multicap Fund | 12.57 | 9.00 | 12.16 |
Axis Focused 25 Fund | 15.91 | 12.68 | 13.98 |
Franklin India Focused Equity Fund | 10.85 | 6.47 | 9.89 |
Expert Take
Harshvardhan Roongta, CFP, Roongta Securities
This is one of the few schemes which has been a consistent performer across market cycles. The investment style is growth-oriented. Being a multi-cap fund, the fund manager has the liberty to invest in quality companies irrespective of size. A major portion of the portfolio is in largecaps which provides relative stability from volatility. Investors looking for a quality multicap fund can choose this scheme without hesitation.
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