Kotak Opportunities Fund

Kotak Opportunities Fund is being managed by Krishna Sanghvi and Anurag Jain. The fund employs a combination of top-down and bottom-up strategies. Its performance has been a mixed bag with best performance in a market upturn and worst performance in a downturn, among its peers. If you have invested in this fund, keep a close watch on where performance is headed. However no more than 30% of your total investment portfolio must be allocated to this fund. If you are a new investor you can skip this one for a better performing large cap fund.

Where does Kotak opportunities fund invest your money?

Kotak Opportunities is a diversified multi cap fund which invests your money in across large, mid and small cap stocks of high growth companies across sectors. Kotak Opportunities has 76.87% exposure to giant and large size companies, 22.29% exposure to medium size companies and 1% exposure in small size companies. Large cap companies tend to be stable compared to mid cap and small cap companies. Small and mid size companies have the potential to become large companies and when that happens you are expected to get bumper returns.

Suitable for what?
  • Child's education
  • Child's marriage
  • Retirement Planning
  • Home Purchase
Not Suitable for?
  • Creation of wealth
  • Lifestyle needs
How much to invest?

Minimum one time investment is Rs 5000 and minimum SIP is Rs 1000 per month. Kotak Opportunities Fund can be a 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. 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. Kotak Opportunities Fund can be part of the satellite portfolio.

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

If you had invested Rs 1 lakh when the fund was launched in Sep 2004 the value of your investments would be around Rs 4.98 lakhs. If you had invested Rs 1 lakh five years back it would have become Rs 1.16 lakhs. The performance has been not better than or similar to other mutual funds in this category. The fund has been giving at around 3.13% every year for those who stayed invested for last 5 years.

Assume you had invested Rs 10,000 every month in Kotak Opportunities fund through SIP for the past 5 years today you would have just around Rs 7.70 lacs.

How will Kotak Opportunities 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 follows their performance. 

So if you expect the economy to grow at 9% then you can expect top performing mutual funds to give you returns in excess of 15%. 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 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?

A onetime fee of Rs 100 is charged on investments over Rs 10, 000 made through distributors. If you are a first time investor in mutual funds an additional Rs 50 is charged to cover KYC expenses. This is deducted from your investment and can be skipped if you buy directly from the mutual fund via their website or offices.

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 Opportunities Fund is 2.14%. 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 Opportunities Fund does not qualify for sec 80C ELSS benefits.

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