Kotak India Equity Contra Fund - Direct-Growth

Kotak India Equity Contra Fund - Direct-Growth

Basic Details of the Kotak India Equity Contra Fund:

Kotak India Equity Contra Fund (KICF) currently has an AUM of Rs. 1,228 Cr, since its inception in January 2005. Mr. Shibani Kurian is managing the fund from May 2019 to the present. S&P BSE 500 TRI benchmarks the Kotak India Equity Contra Fund. The Expense ratio of the KICF is 0.90% which is a little higher for a direct mode investment, and the current NAV of the fund is INR. 85.03. Exit load of the fund is 1% for the excess withdrawal of 10% if withdrawn before 1 year and 0% after 1 year.

About Contra Investment Strategy:

A Contra fund invests in stocks that are currently underperforming due to short-term issues but have good growth potential in the medium to long term. The contra investment strategy's idea is to purchase quality stocks at lower prices and book higher profits.

Minimum Investment Details

The Minimum initial lump sum amount to be invested in the fund is Rs.5,000/. The minimum additional purchase amount is Rs. 1000/- and the minimum SIP Amount is Rs.1,000/-

Market caps, Stocks, and Sectors:

Kotak Contra Fund currently has 55.80% invested in giant companies, 29.18% invested in large-cap funds, 14.81% invested in mid-cap companies, and 0.21% invested in small-cap companies.

The top 5 sectors in the portfolio comprise of Financial Services - 28.83%, Industrials - 14.51%, Industrials – 12.26%, Technology – 10.81%, and Consumer Cyclical – 9.25% contributing a total of 64.85%.

Out of the total of 48 stocks in the portfolio, the top 5 stocks are ICICI Bank – 7.82%, RIL – 7.06%, Infosys – 5.18%, HDFC Bank – 4.22%, SBI- 4.16%.

The contribution of the top 5 stocks in the portfolio is 28.44% and the top 10 stocks in the portfolio contribute up to 42.93%. The remaining 48 stocks in the portfolio have an asset allocation of 57.07%. Thus, the diversification of the stocks in the portfolio is good. However, almost half of the performance of the fund is mainly dependent on the top 10 stocks of the portfolio.

Kotak India Equity Contra Fund Performance & Risk Profile:

Diversified Investments; moderate Concentration of Stocks:

KICF has diversified its investments, i.e., the top holding ICICI Bank's allocation in the portfolio is about 7.82%, the top 10 stocks allocation is at 42.93%, and the remaining 48 stocks holding in the portfolio is at 57.07%.

Similar Volatility as its Index and lower Risk-Return Ratios:

As shown above, the fund can successfully deliver stable returns to its investors over the years. The fund has a standard deviation of 22.16%, while its index S&P BSE Large Midcap TRI's standard deviation is at 21.81%, and the 3-year Sharpe ratio of KICF is at 0.52, better than its benchmark S&P BSE 500 TRI.

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