Kotak 50 Fund

Kotak 50 fund is a moderately performing fund among its peers. This fund is managed by Pradeep Kumar and Krishna Sanghvi. Krishna Sanghvi adopts a combination of top-down and bottom-up approach while choosing stocks. Kotak 50 one of the earliest funds from Kotak AMC and was previously known as Kotak 30. The fund has a focused investing approach within a diversified bag.

Where does Kotak 50 Fund invest your money?

Kotak 50 Fund is a diversified large cap fund which means most of your money will be invested in giant and large companies. And just to give kicker returns the fund has some exposure in mid cap companies as well. Large cap companies tend to be stable compared to mid cap and small cap companies. The portfolio allocation is 90% in stocks of large cap companies and 10% in stocks of mid cap companies.

Suitable for what?
  • Child's marriage
  • Child's education
  • Retirement Planning
  • Home Purchase
Not suitable for?
  • Short term goals
  • Creating wealth
  • Lifestyle needs

 

How much to invest?

Minimum one time investment is Rs 5000 and minimum SIP is Rs 1000 per month. Make Kotak 50 as part of your core portfolio. Core portfolio is investments that are made for your basic goals and makes up about 70% of your investment portfolio. Kotak 50 Fund can be part of your satellite portfolio. Do not make the mistake of investing in too many mutual fund schemes. At any point of time do not have more than two mutual fund schemes in your core portfolio.

Our recommendation for fresh investment
Not Recommended
Our recommendation for existing investment
Recommended
How has Kotak 50 performed in the past?

If you had invested Rs 1 lakh when the fund was launched in Dec 1999 your value of investments would be around Rs 9.6 lakhs. If you had invested Rs 1 lakh five years back it would have become Rs 1.4 lakhs. The performance in the last five years has been better or similar to other mid cap mutual funds. The fund has been giving around 7% every year for those who stayed invested for last 5 years.

Assume you had invested Rs 10,000 every month in Kotak 50 through SIP for the past 5 years today you would have around Rs 7 lakhs.

How will Kotak 50 perform in the future?

Needless to say no one can predict the future of markets. We have firm belief in the future prospects of the Indian economy. If the Indian economy grows at 9% then the leading companies tend to do well. When the companies do well their stock prices follows their performance. So if you expect the economy to grow at 8% then you can expect top performing mutual funds to give you returns in excess of 14%.

Mutual fund schemes that have exposure to mid size companies tend to show results when their bet on few companies comes true. We advise you to avoid too much of star gazing and future prediction. Be reminded that equities are one of the asset classes that have the potential to beat inflation. Your aim for core portfolio should be to beat inflation.

When to review?

Once you invest in the fund do not get into the habit of checking the NAV daily or monthly. Review the performance once a year. Too much attention is not good.

What charges apply?

If units are sold within a year an exit load of 1% is deducted from your total returns. No exit load applies for units withdrawn post one year. Expense ratio of Kotak 50 is 2.54%. This is charged to recover the fund management company’s expenses on securities’ transactions, commissions, registrar fees, etc. Your mutual fund returns will be total returns less expense ratio.

When to exit?

Withdraw when your goals are closer to achievement. Do not remove the money when the markets go up or down. Do not panic. Stick to your goals.

What are the tax implications?

The returns in a mutual fund are absolutely tax free, provided you did not withdraw within 1 year. Kotak 50 Fund does not qualify for sec 80C ELSS benefits.

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