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

After a remarkable return in the last few quarters, the global equity market is showing signs of nervousness due to a multitude of factors. In such a condition, it makes sense to invest in Large-Cap companies that remain stable during volatile times. Nevertheless, Mid-Cap stocks should not be ruled out as they have the potential to generate alpha for your portfolio. Given this scenario, our recommendation for this issue is Kotak Equity Opportunities Fund. With a history of remarkable performance and a well-structured portfolio, this fund deserves a closer look. The Kotak Equity Opportunities Fund has consistently delivered impressive returns compared to its category average, as indicated by its trailing returns. Over the past year, the fund has yielded returns of 15.11 per cent, outperforming the category average of 13.78 per cent. Over the five-year horizon, the fund’s return of 19.20 per cent stands strong, exceeding the category average of 17.24 per cent. Kotak Equity Opportunities Fund’s rolling return performance further underscores its consistency. Across various timeframes, the fund’s rolling returns surpass both the category average and the high-growth portfolio median.



What has led to such a performance is a well-diversified portfolio consisting of 70 different stocks. This diversity helps mitigate risks and reduce the impact of individual stock fluctuations. The top 10 holdings account for 34.97 per cent of the portfolio, ensuring a balanced allocation among the fund’s investments. With an alpha of 5.24 and a beta of 0.85, the fund has shown the ability to outperform the market while maintaining a lower level of risk compared to the category average. Whether you are a seasoned investor or a newcomer to the mutual fund arena, this fund is worth consideration. Remember though to align your investment objectives with the fund’s strategy and conduct due diligence before making an investment.