Kotak Emerging Equity Scheme: Fund review
One of the key aspects of the scheme is the quality of its portfolio, which includes companies that have high corporate governance standards, lean cost structure and better balance sheets than their peers in their respective sectors.
In this scenario, investments in schemes which are particularly focused on mid-sized companies would be a rewarding experience once consumption improves in the coming quarters.
To a certain extent, valuations look favourable in case of midsized companies. The Nifty Midcap 100 index is trading at oneyear forward price-to-earnings multiple of 17.1, which is almost on a par with its five-year average of 17.8. This implies that once consumption improves and the benefits of the government’s tax stimulus fructifies, well-placed mid-sized companies may see earnings upgrades in the coming quarters.
Among mid-cap schemes, investors can consider investing in Kotak Emerging Equity Scheme. One of the key aspects of the scheme is the quality of its portfolio, which includes companies that have high corporate governance standards, lean cost structure and better balance sheets than their peers in their respective sectors. Keeping these factors in mind, the scheme’s fund manager Pankaj Tibrewal has demonstrated encouraging performance both in the long-term and short-term. In the past five-year and ten-year periods, the scheme has given returns of 13% and 14.1%, respectively, while its peers in the same category have given average returns of 10% and 13.6% respectively.
Portfolio change (Past 6 months)
|New Entrants||Complete Exits||Increase in Allocation|
|Cadila Healthcare||Eveready Industries (India)||SBI, Max Financial|
|HPCL, Axis Bank||Bharat Financial Inclusion||Sheela Foam|
|Indusind Bank||D-Link (India)||Alkem Laboratories|
Returns (In %)
|Period||CAGR Return||SIP CAGR Return||Midcap-AVG Annualised Return (%)|
Returns peer comparison (In %)
|Kotak Emerging Equity Scheme||9.10||5.55||12.91|
|Axis Midcap Fund||17.27||12.21||12.47|
|DSP Midcap Fund||11.50||6.25||12.99|
Kaustubh Belapurkar,Director Fund Research, Morningstar India
Pankaj Tibrewal runs the fund with a focus on containing downside risk. The fund’s portfolio has been positioned to gain advantage of leverage and growth in the domestic economy with its positions in basic materials, financials and consumer cyclical stocks. The fund is an excellent option for investors looking invest in the mid-cap space.