Kotak 50 - Large Cap Advantage
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Kotak 50 is a diversified open-ended equity scheme, which intends to invest in quality companies in the large market capitalisation segment across various sectors. The portfolio comprises equity and equity-related instruments of around 50 companies, with the flexibility to extend upto 59 companies.
Launched in December 1998, the fund has generated returns of 27.24 per cent on a compounded basis since its inception, as compared to returns of 20.56 per cent by its benchmark, the S&P CNX Nifty. The fund has outperformed its benchmark for the last 10 calendar years, except in 2009 and 2010. It had taken huge cash calls in 2009, which led to its underperformance vis-a-vis its benchmark as well as its category. However, the fund has changed its strategy since then, and does not take huge cash calls now. In the last one year, on an average the fund had 93 per cent of its net assets invested in equities.
Kotak 50 is managed by Pradeep Kumar and Krishna Sanghvi. Together, they bring in a cumulative experience of 25 years of fund management to the table. In terms of portfolio composition, the fund is fairly diversified, with the top five holdings constituting 31 per cent of the portfolio. As at the end of September 2011, the fund is overweight on petroleum products, pharma and power, and underweight on interest-sensitive sectors, including auto, banks, etc., as compared to its benchmark.
Currently, the Indian equity markets are trading at attractive valuations. Investors looking to invest in a diversified portfolio of Large-Cap companies can look to invest in this fund.