Kotak Midcap Fund

Kotak Mid-Cap Fund is managed by Pankaj Tibrewal & Emmanuel Elango. Existing investors should keep a close watch on its performance and then exit, if it continues performing bad. New investors can skip this one safely for in better returns.

Where does Kotak Mid Cap Fund invest your money?

Kotak Mid-Cap Fund is a mid cap fund which means most of your money will be invested in medium sized companies. About 61% of the fund’s money is allocated to stocks of mid size companies, 35% to stocks of small size companies and 4.30% to those of large companies. Mid size stocks can give kicker returns as they turn into large stocks but this happens not so frequently.

Suitable for what?
  • Creating wealth 
  • Lifestyle needs
Not Suitable for?
  • Child's education
  • Child's marriage
  • Planning for retirement
  • Short term needs
How much to invest?

Minimum one time investment is Rs 5000 and minimum SIP is Rs 1000 per month. Do not make Kotak Mid-Cap Fund 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 Mid-Cap 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
How has Kotak Mid-Cap Fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched in Feb 2005, your value of investments would be around Rs 2.73 lakhs. If you had invested Rs 1 lakh five years back it would have become Rs 1.21 lakhs. The performance has not been better or similar to other mid cap mutual funds. Assume you had invested Rs 10,000 every month in this Kotak Mid-Cap Fund through SIP for the past 5 years today you would have around Rs 8.17 lakhs.

When to review the performance?

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 No exit load applies for units withdrawn post one year.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 Mid-Cap Fund is 2.34%. 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. Kotak Mid-Cap Fund does not qualify for sec 80C ELSS benefits.

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