Is it the Right Time to Invest in Kotak Standard Multicap Fund?

Investors mind is always full of numerous questions whenever they make active investment choices time and again. There are many factors that are needed to be sure about while making an investment decision. Kotak Mahindra Mutual Fund which is one of the many AMCs present in the market with investment products, launched Kotak Select Focus Fund on September 11th, 2009. This scheme is now known as Kotak Standard Multicap Fund as a result of the re-categorization guidelines by SEBI. Let’s read if it is the right time to invest in this scheme.

There are a number of factors which should be considered before finalizing a scheme. First of all an investor must be well aware of his portfolio’s requirement, his risk bearing appetite and the goal that he wants to achieve. Kotak Standard Multicap Fund has it own unique points that you should consider. They are as follows.

Fund’s Performance: This scheme has yielded brilliant results of 24.67% in five-year, surpassing both its benchmark and category as on August 22nd, 2018. It has even beaten its competitors such as Axis Focused 25 Fund (23.10) and Tata Retirement Savings Fund - Progressive Plan (23.83%).

Risk Measures: In comparison to its benchmark NIFTY 200 TRI and category, the standard deviation (13.69%) and Beta (0.94%) of this scheme are both lower which shows that this scheme will comparatively fluctuate less as per the market conditions. The sharpe ratio of benchmark is 0.41% and category is 0.32% while that of this scheme is 0.50% as on July 31st, 2018. This shows that in comparison to both others, this scheme is likely to earn more by taking more risk.

Expense Ratio: This scheme has the minimum expense ratio compared to its competitors which is 2.07%. While all others such as Mirae Asset India Equity Fund, Quant High Yield Equity Fund, Axis Focused 25 Fund, and Tata Retirement Savings Fund - Progressive Plan have expense ratio equal to or more than 2.10%.

Consistent Performer: This scheme is a consistent performer as it has surpassed its benchmark, category and peers time and again. This scheme though is focused on a few sectors but its investment is spread across equities. This helps in minimizing the overall risk and get benefit of better capital appreciation at the same time. Since, it is a multicap fund, it has managed to yield good returns till now. Even though the correction phase is going on, it is estimated that investment in this fund will prove to be good decision in the coming time.

Overall it does seem to be a good scheme to invest in. Those investors who can bear moderately high risk on the principal amount may invest in this scheme. It mainly helps investors earn long-term capital appreciation by making investment mainly in equity and its related instruments remaining focused on a few sectors.

Investment Details of Kotak Standard Multicap Fund Growth1. The minimum investment amount with which an investor may start his investment in it is Rs. 5000 for first time investors and Rs. 1000 for existing investors. 2. No entry load is payable by investors investing in this scheme. In case you redeem the units within one year of investment, then you will be liable to pay 1% as exit load. After completion of one year, this amount too will be nullified.3. Kotak Standard Multicap Fund NAVas on August 21st, 2018 is Rs. 35.342.

These were the basic details about which you should be aware to make the investment procedure simple. In case of any query, don’t forget to consult a financial advisor.

In this article, you will get to read about Kotak Standard Multicap Fund by Kotak Mahindra Mutual Fund.

Dishika is well-versed with the ups and downs of the financial market and has published articles on mutual fund and SIP. She is associated with MySIPonline.com, which is an AMFI registered mutual fund company.