About Equity Mutual Funds
Investment Objective and Strategy of Kotak Select Focus Fund
Fund Information and Statistics
Launch Date: The Kotak Select Focus Fund was first opened for investment on the 11th of September 2009.
Fund Type: The Kotak Select Focus Fund is designated as an open-ended equity scheme, which allows new investors to invest in or redeem/switch from the scheme at a time of their choice.
Minimum Investment: The minimum investment amount for a new investor is Rs. 5000 as a lump sum, however higher amount investments are also allowed in multiples of Re.1 over the minimum amount. Minimum additional investment allowed in the scheme is Rs.1000 with higher amounts of Re.1 over the Rs. 1000 level.
Risk Category: Being an equity fund, the majority of the investments of Kotak Select Focus Fund are made into equity shares of various companies listed on the stock exchange. This results in an inherent risk of liquidity as well as the possibility of high growth for the fund. That said, the fund follows a sector as well as market capitalisation agnostic style of investment, which ensures that a balance between risk and growth is maintained for the scheme. Thus the Kotak Select Focus Fund features a moderately high-risk level including risk to the principal amount invested.
Entry/ Exit Load: According to a SEBI mandate, Indian mutual fund companies have suspended all entry loads for mutual fund scheme investors. However, an exit load is levied at 1% if the fund in case units of Kotak Select Focus Fund is switched/redeemed prior to completion of the 1 year period from the date of unit allocation. In case, the units are switched/redeemed after completion of the 12 month period.
Fund Manager: The Kotak Select Focus Fund is currently managed by Mr. Harsha Upadhyaya, who also heads the equity department at Kotak Asset Management Company. Prior to joining Kotak, he has worked with leading companies in the financial sector including DSP BlackRock, Reliance Group, SG Asia Securities and UTI Asset Management. He is IIM, Lucknow alumnus and also holds a Chartered Financial Analyst charter from the US-based CFA Institute.
Plans and Options Available
Direct Plan: Direct Plan of Kotak Select Focus Fund is available to investors investing online or offline through Kotak Asset Management. The direct plan is capable of providing a higher degree of growth to the investor in the medium to long term as compared to the regular plan due to its lower expense ratio.
Regular Plan: This plan for the scheme is available through Kotak AMC as well as through various 3rd party mutual fund distributors such as Paisabazaar.com. In the case of some brokerages/fund distributors, you may be charged a brokerage or portfolio management fee, however, that’s not the case if you invest in the Kotak Select Focus Fund Regular Plan through Paisabazaar.com.
Dividend Option: This option is available in case of both the regular plan as well as the direct plan of the scheme. The scheme may announce dividends from time to time depending on the fund’s performance and the availability of distributable surplus with the scheme. In case the dividend payout option is chosen, the money is credited directly to the registered bank account of the investor, while the dividend re-invest plan features the automatic conversion of the dividend earned into units of the scheme and added to the original number of units available to the investor.
Growth Option: The growth option of the Kotak Select Focus Fund is specifically suitable for investors seeking long-term capital appreciation on their investments. While an investor stays invested in the fund, no payouts would be available unlike in the case of dividend option. However, all profits made by the fund are invested back into the fund, which increases the unit NAV and can provide capital gains to the investor at the time units are redeemed/switched.
Leading Investments of the Kotak Select Focus Fund
|Banking and Financial Services||HDFC Bank, IndusInd Bank, State Bank of India, ICICI Bank, Axis Bank, Bajaj Finance, RBL Bank, ICICI Prudential, Bajaj Finserv, Equitas Holdings, Federal Bank, Housing Development Financial Corporation, Bank of Baroda, etc.|
|Oil & Gas||Reliance, Gas Authority of India Limited, Hindustan Petroleum Corporation Limited, Indraprastha Gas Limited, Petronet Liquefied Natural Gas, Bharat Petroleum Corporation Limited, etc.|
|Automotive||Hero Motorcorp, Maruti Suzuki India Limited, Mahindra & Mahindra, MRF, Tata Motors, Ashok Leyland Limited, etc.|
|Cement & Construction||UltraTech Cement, Shree Cements, Ramco Cements, JK Lakshmi Cements, etc.|
|Engineering & Capital Goods||Larsen, Techno Electric and Engineering Company, AIA Engineering, KEC International, Kirloskar Industries, etc.|
|Manufacturing||Bharat Electronics, Max Financial, Arvind, etc.|
|Pharmaceuticals & Chemicals||Cadila Healthcare, Lupin, Laurus Labs, Sun Pharmaceutical Industries, Bayer CropScience, Solar Industries India, etc.|
|Miscellaneous||Indian Tobacco Company, Britannia, HCL Technologies, Bata India, Whirlpool, Godrej Consumer Products, Container Corporation of India, Navkar Corporation, Avenue Supermarts, CNX NIFTY-May 2017, Zee Entertainment Enterprises Limited, etc.|
|Term Deposits||Axis Bank and Standard Chartered Bank.|
|Cash/Call Instruments||Reverse Repo, Collateral Borrowing & Lending Obligation, etc.|