12,080.85-45.05
Stock Analysis, IPO, Mutual Funds, Bonds & More

Should I switch to Kotak Standard Multicap Fund?

If you have any mutual fund queries, message on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.

ET Online|
Last Updated: Jan 23, 2020, 04.55 PM IST
0Comments
iStock
ELSS mutual funds
Tax Calculator
I have been investing in the Aditya Birla Sun Life Equity Fund via SIP for the past one year. The scheme has given negative returns. I am considering switching the SIP to Kotak Standard Multicap Fund, given its better performance, slightly lower expense ratio, and lower exposure to small caps. Should I switch to Kotak Standard Multicap Fund? Or should I consider any other mutual fund in this category? I am already investing in Axis Bluechip Fund, so I want to avoid Axis Multicap Fund.
--Rohan Jain

Chokkalingam Palaniappan, Director, Prakala Wealth Management, responds:


The Kotak Standard Multicap Fund has performed better than ABSL Equity Fund in the past. However, ABSL Equity Fund is also a decent peformer. Since you have recently started the SIP, it is better to continue with the fund. Give it some more time and then take a call.

You have to live with a fund for at least one full cycle to reap the benefits of a fund manager’s actions. Small and mid cap stocks in a fund brings alpha over a period of time. If you can wait for five plus years, there is no need to invest in a pure large cap fund. You may also consider investing in Invesco India Growth Opportunities Fund and Kotak Equity Opportunities Fund. Both the funds come under the large & mid cap category. Kindly remember, the large & mid cap category has a higher risk-reward ratio than the multi cap category.
(If you have any mutual fund queries, message us on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.)
Comments
Add Your Comments
Commenting feature is disabled in your country/region.

Other useful Links


Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service