Fund of Fortnight

This is our mutual fund recommendation. Every fortnight, we recommend one open-ended equity diversified fund that has the best potential of returns for the next one year considering its constituents remain the same.[EasyDNNnews:PaidContentStart]



Reason for recommendation

Investors are currently in a sweet spot as both equity and debt are likely to do better. Equity is already in momentum and falling inflation and bond yields is making even Debt Funds attractive. Hence, to exploit this opportunity we are recommending a fund that invests in both equity and debt. Kotak Equity Hybrid Fund has demonstrated consistent and commendable performance, making it a compelling option for investors seeking growth and stability. Over various timeframes, the fund has delivered returns that exceed or were on par with the category average. Looking at the one-year and three-year performance, the fund continues to impress with returns of 16 per cent and 23 per cent, respectively, which are in line with or better than the category averages. Furthermore, its five-year performance with returns of 16 per cent compared to the category’s 14 per cent underscores its consistency and growth potential. The fund’s sectoral allocation is wellbalanced with a focus on sectors that are essential for longterm growth. It has a notable allocation of 17 per cent in the financial sector. Additionally, the fund has positions in materials (7 per cent), automobile (6 per cent), technology (6 per cent) and capital goods (5 per cent), showcasing a diversified approach that spreads risk across key sectors. Besides, this fund also holds 18 per cent of its corpus in sovereign bonds and 4.2 per cent in AAA-rated bonds, which give stability to returns.



The fund holds a portfolio comprising 60 different stocks, ensuring a good level of diversification. The top 10 stocks account for 26.8 per cent of the portfolio, which implies a broad distribution of investments. The top five stocks make up 17.01 per cent and the top three stocks constitute 24.92 per cent of the portfolio, highlighting a well-rounded selection of holdings. Considering the fund’s consistent performance, well-diversified portfolio and competitive returns compared to its category, it is indeed an attractive option for investors seeking growth potential with moderate risk. 

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