Kotak Funds - India Midcap Fund

Kotak believes that midcaps are well positioned to benefit from India’s domestic growth. The Indian asset manager sees “structural tailwinds in this segment driven by regulatory changes and formalisation of the economy, where midcaps are sector leaders and may benefit as the category expands”.

The actively managed fund invests at least two thirds of its total assets (excluding cash) in equity and equity linked securities of mid-capitalisation companies registered in India or deriving a significant portion of their business from India. What companies belong to the midcap segment is defined by the investment manager from time to time.

The fund uses the Nifty Midcap 100 Index for performance comparison purposes and is not constrained by the benchmark.

Key Information

Investment Category India Equity
ISIN / Bloomberg Ticker LU0511423146 / KOTIMAU LX Equity
Benchmark Index Nifty Midcap 100
Inception Date (share class) 25 May 2010*
Assets Under Management (AUM) $3999.90 mn
Management Fee 2.0% (of the Net Asset Value)

Data as per 30 April 2024

*share class
**India MidCap Fund as a whole

Strategy

Kotak incorporates environmental, social and governance (ESG) factors in its investment management process and evaluates companies on the basis of these factors before making an investment decision. This promotes environmental and social characteristics within the meaning of Article 8 of the SFDR, in addition to other characteristics. However, the ESG factors are not binding on the investment manager when allocating the portfolio of the India Midcap Fund.

Performance

1 Year (Fund / Benchmark*) 33.45% / 48.54%
3 Years (Fund / Benchmark*) 13.11% / 14.65%
5 Years (Fund / Benchmark*) 12.44% / 11.91%

All performance data: net return after considering all expenses including tax
and investment management fees, as of 30 April 2024. Performance over 1 year is annualised.

*MSCI India Mid Cap USD Net used for the performance snapshot, for comparison only.

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Portfolio

As of 30 April 2024, the Kotak Funds – India Midcap Fund has allocated 81.54% to mid caps, followed by small caps (8.61%), large caps (7.66%), and cash (2.19%).

As per sectors, 21.1% are invested in Financial Services. Healthcare (13.6%), Automobile and Auto Components (12.9%), Capital Goods (11.0%) and Consumer Durables (7.9%) complete the top 5, making in total 66.5% of the fund’s portfolio. Compared to the MSCI India Mid Cap, the Kotak fund is overweight in Financial Services, Healthcare, Consumer Durables, Information Technology and Realty and underweight in Automobile, Capital Goods, Consumer Services, Chemiclas and Fast Moving Consumer Goods.

Out of the 85 holdings, the five largest are:

  • Zomato Limited Consumer Services (3.8%)
  • Shriram Finance Limited Financial Services (3.4%)
  • Power Finance Corporation Limited Financial Services (2.8%)
  • Cummins India Limited Capital Goods (2.6%)
  • Apollo Hospitals Enterprise Limited Healthcare (2.6%)

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