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.

Reason for recommendation
Over the past few months, the Mid-Cap index has outperformed most of the equity indices. It is already trading at a lifetime high and is expected to keep its momentum intact for a while. Hence, our recommendation is also from this category. In terms of performance, Kotak Emerging Equity Fund has demonstrated impressive results across various time periods. Over the past year, the fund achieved a median rolling return of 16.7 per cent, surpassing the category average median of 11.3 per cent. This outperformance is even more pronounced when we consider longer timeframes. Over a three-year period, Kotak Emerging Equity Fund delivered a robust median rolling return of 21.1 per cent, outperforming the category average median of 12.9 per cent. Moving on to the portfolio summary, Kotak Emerging Equity Fund comprises a total of 78 stocks. The top 10 stocks account for 31.02 per cent of the fund’s portfolio, highlighting a concentrated but well-diversified approach. The top five stocks alone contribute to 17.95 per cent of the portfolio, indicating a focused investment strategy. Furthermore, the fund’s top three stocks represent 11.71 per cent of the portfolio, showcasing a few holdings at the top. The fund allocates 17.32 per cent of its holdings to Large-Cap stocks, slightly higher than the category average of 14.74 per cent. 

Mid-cap stocks represent the majority, comprising 71.74 per cent of the fund’s portfolio, in line with the category average of 71 per cent. Finally, Small-Cap stocks make up 10.95 per cent of the fund’s holdings, slightly lower than the category average of 14.26 per cent. In conclusion, Kotak Emerging Equity Fund has demonstrated strong performance, consistently surpassing the category average median across various time periods. Its well-structured portfolio comprising a concentrated selection of stocks has contributed to its success. Hence, we recommend this portfolio to investors with high risk and investment horizon of at least three years.