Kotak Mutual Fund launches multi-cap fund

Kotak Mahindra Asset Management Company (Kotak Mutual Fund) today announced the launch of Kotak Multicap Fund, an open-ended scheme that will invest in a mix of large-cap, mid-cap, and small-cap stocks. The fund’s objective is to generate long-term capital appreciation from a portfolio of equity and equity-related securities across market capitalisation. The fund is suitable for all classes of investors aiming to fulfill long-term financial goals such as a child’s education, retirement, or buying a dream home.

Harsha Upadhyaya, President & CIO – Equity, Kotak Mahindra Asset Management Company said, “We follow a disciplined investment process of BMV i.e. by focusing on Business scalability & sustainability, Management Quality, and Valuation parameters. We are also committed to the principles of Environmental, Social and Governance (ESG) factors”.

The fund house had earlier Kotak Standard Multicap Fund as a multi-cap fund, however, it was later on classified as a flexi-cap fund after a Sebi circular in the month of September 2020 that defined the holdings of the multi-cap fund. According to Sebi mandate, multi-cap fund should invest a minimum of 25 per cent in large cap, 25 per cent in mid cap and 25 per cent in small-cap stocks. The balance 25 per cent can be invested at the fund manager’s discretion. Multicap category was the second-largest segment in the mutual fund space and was managing Rs 1.47 lakh crore of asset under management, second to the large-cap category that manages Rs 1.49 lakh crore at the end of August 31, 2020.