Kotak Contra Fund (renamed as Kotak Classic Equity)

Kotak Contra Fund is managed by Emmanuel Elango & Krishna Sanghvi. The fund invests in fundamentally strong companies, which are currently undervalued due to temporary/non-recurring reasons. The fund’s performance has been unimpressive. Existing investors should exit and new investors can skip this one.

Where does Kotak Contra Fund invest your money?

Kotak Contra Fund is a multi cap fund which will invest your money without sectoral bias in stocks of companies that are out favour at the moment for certain reasons. About 66% of the fund’s money is allocated to stocks of large sized companies, 23% to stocks of mid sized companies and the remaining to those of small companies. Mid sized stocks can give kicker returns as they turn into large stocks but this happens not so frequently. Large cap companies tend to be stable compared to mid cap and small cap companies.

Suitable for what?
  • Creating wealth
  • Lifestyle needs
Not suitable for what?
  • Child's education
  • Child's marriage
  • Planning for retirement
  • Home purchase
How has Kotak Contra Fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched in July 2005, your value of investments would be around Rs 2.21 lakhs. If you had invested Rs 1 lakh five years back it would have become Rs 1.27 lakhs. The performance has not been better or similar to other large cap mutual funds. 

Assume you had invested Rs 10,000 every month in this Kotak Contra Fund through SIP for the past 5 years today you would have around Rs 7.93 lakhs.

How will Kotak Contra Fund 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 follow 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 sized 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.

Our recommendation for fresh investment
Not Recommended
Our recommendation for existing investment
Recommended
When to exit?

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

What are the charges applicable?

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 Contra Fund is 2.95%. 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.

What are the tax implications?

The returns in an equity mutual fund are absolutely tax free, provided you do not withdraw within 1 year.

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