Kotak Select Focus Fund - Growth: Best performing fund in last 5 years

Kotak Select Focus Fund - Growth: Best performing fund in last 5 years

Apr 24, 2018

Large Cap equity funds invest a large proportion of the corpus fund in companies with large capitalization. Large Cap companies are known to be stable and provide consistent returns and security over a large period of time. Kotak Select Focus Fund is a mutual fund which is categorized as a large cap equity fund.

Details of Kotak Select Focus Fund

The fund was launched on 11.09.2009. The minimum investment in the fund is Rs. 5000 and subsequent investments can be made into it with a minimum investment of Rs. 1000. It is generally considered to be a moderately high risk fund as is the nature with Large Cap funds, has a major percentage of its corpus being invested in large cap companies. The stated objective of the fund is to provide returns which are at par with the total returns pertaining to CNX PSU Bank Index.

More than 1/5th of the corpus is invested in the Banking sector. Finance, Automobiles, Petroleum products, Cement, Gas, Consumer Non durables, construction projects etc are the other major sectors into which the investments are made by Kotak Select Focus Fund – Growth. A major portion of the investments are made into large cap companies like HDFC Bank, Reliance , Hero Motor Corp, Housing Development Finance Corporation, State Bank of India, ITC ltd, Maruthi Suzuki India Ltd, IndusInd Bank ltd etc. These large cap companies contribute to nearly 32 % of the investments made. 4.46% of the corpus is invested into CBLO (Collateral Borrowing & Lending Obligation). More than 60% of the investment is made into a diverse range of large capital companies; this diversification helps in mitigating risks in lieu of any market instabilities. Investing in such large capital companies provides Kotak Select Focus Fund with stability and cover against market fluctuations.

Performance of Kotak Select Focus Fund

The fund has been a strong performer, recording returns which are consistently higher than the performance of the category i.e. Large Cap Equity funds.

Source: Swaraj Wealth Research

The five years returns of the fund is 22.2 % which is higher than both the CNX200 Benchmark and Equity Funds large cap category returns which stand at 15.02% and 15.28%. Although the one year return is marginally less than the category’s average returns, the three year returns at 12.08% are considerably higher than the returns of the category and CNX 200.

The yearly returns of the of Kotak Select Focus Fund records a strong performance of 34.31 % which is slightly better than the returns recorded by the category of Equity Funds Large Cap and the benchmark index of CNX200 for the year 2017.

Source: Swaraj Wealth Research

The strong yearly performance is a consistent feature, with the fund recording stronger performances than the category over the last 3-4 years.

Rolling returns are a good measure to indicate the performance of a fund over a specific period of time period. Good rolling returns over a period of five years indicate a consistent and stable performance of the fund during that time frame.

Source: Swaraj Wealth Research

Kotak Select Focus Fund – Growth recorded rolling returns of 22.11 % over a period of five years (April 2013 – April 2018). This performance by the fund is higher than the 5 years rolling returns average 15.17%. The 5 year rolling returns recorded by the fund during the previous years have been higher than that of the category.

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