Launched on the 11th of September, 2009, Kotak Select Focus Fund is a multi-cap mutual fund investment scheme which looks to generate long-term capital appreciation from a portfolio of equity and equity-related securities while focusing on a few selected sectors. An open-ended equity scheme, this mutual fund has registered very good performance as compared to its peers in its category. The fund’s excellent mutual fund performance has ensured this scheme has been one of the best performing mutual funds in India. This fund is suitable for investors looking to invest in mutual funds, keeping in mind a long time horizon, while looking to fulfill long-term investment objectives like retirement planning, children’s higher education etc. The minimum investment amount for investing in this fund scheme is Rs. 5,000. If an investor opts to choose the SIP investment route, then the minimum required investment is Rs. 500.
Although a relatively late entrant to the multi-cap party, this fund has managed to make quite an impression after its launch. This scheme ranks amongst the top mutual funds in India and is currently ranked first in the ‘Large-Cap’ category by CRISIL for the first quarter of financial year 2017-18 ended in June which remains unchanged from the previous quarter. CRISIL has rated the fund’s performance as ‘very good’ in this particular category. A large-cap diversified mutual fund is termed as a mutual fund investment scheme that looks to invest the client’s capital in only those companies which are top-notch in the stock market. The fund has been managed under the stewardship of Mr. Harsha Upadhyaya since 2012 and useful for clients who have financial goals which will require an enormous amount at a single time.
The fund management teams tend to adopt a top-down approach which basically entails that the team tends to look out for companies that have proven business models in place which are not only scalable & sustainable but also provide a competitive edge in their respective businesses. Thus, any well-established companies in the market are the ones that come under the radar of the team. At any given moment of time, the fund management team identifies a minimum of four sectors and maximum of nine sectors that should do well. Additionally, although the fund currently has a Multi-cap, growth-oriented focus, Mr. Upadhyaya has the freedom to increase exposure to certain sectors, after research and due diligence, that have showcased higher growth potential. Any securities of financially sound organizations with proven methodologies which are made available at a market price lower than the intrinsic value will also be up for selection.
The team looks to allocate the investor’s capital predominantly in the Banking/Finance sector, Oil & Gas sector, Cement sector, Automotive sector, etc. while keeping the bulk of its money in the Banking/Finance sector. This category is rated as the most aggressive of all mutual fund instruments. However, this allows the clients to rake in maximum returns from their investments, and although an equal amount of sector concentration risk is involved, the fund management team has managed to justify the risk by giving out copious investment returns thus making it worthwhile investing in this scheme. Furthermore, to counter the perceived volatility, the fund also has risk mitigation measures in place which allows the fund manager to contain the risk by building a diversified portfolio. This fund has consistently managed to outperform its peers while also managing to comprehensively beat them with a comparatively lower expense ratio of 2 percent. In addition, if investors hold on to this investment for more than one year, any capital gains earned on this investment are deemed tax-free in the hands of the investors.
We believe that the fund is backed by a great management team who has delivered on all fronts so far. Boasting of an impressive track record, this is one of the best performing mutual funds in India that has placed its bets on winning sectors while working on a strategy that delivers high alpha. If you are comfortable with a concentrated sector strategy, at ease with a moderately-high risk approach, while keeping in mind a three to five-year time frame, you can approach our financial advisors for customised investment plans.