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Kotak Arbitrage

Kotak Arbitrage

All Cap
Commodities
India Debt Liquid Market
Liquid
Others
Emotionally driven
Investor Profile
1–7 yearsInvestment Horizon
HNI, UHNI, Retail Investor, Mass AffluentTarget Segments
SEBI registered equity mutual fund suitable for all investor categoriesRegulatory Fit
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Kotak Equity Arbitrage Fund Growth invests in alternative assets for non-traditional growth opportunities.

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What This Strategy Does

Kotak Arbitrage Reg Gr is an Arbitrage fund which captures India's ₹2 trillion+ arbitrage opportunity through low-risk arbitrage strategies, deploying capital across financials, industrials, and energy to achieve benchmark-aligned compounding.

CW Expert Research Notes

Performance and Risk Analysis

Historical returns, volatility patterns, and how this fund has performed relative to its benchmark.

Fund Performance

Fund Performance

0.0% AnnuallyAlpha
+5.8% vs +9.2% benchmarkSince Inception
+6.8% vs +6.1% benchmark3Y Annualized
+6.3% vs +4.5% benchmark5Y Annualized
Kotak Arbitrage
Benchmark Index
Fund Performance

Benchmark Performance Comparison

Kotak Equity Arbitrage Fund
FD Returns
Given the product’s limited performance history, the assessment considers the fund house’s track record and the historical performance of comparable strategies managed by the same fund house, which follow similar investment approaches. Such comparisons provide historical context only and do not represent the performance of the new product or indicate its future returns.
Risk Profile

Risk Profile

Standard Deviation0.7%
Sharpe Ratio0.69

Detailed Risks

Market Risk

Potential economic slowdown could reduce arbitrage opportunities and spreads.

Disclaimer: Products compared like fixed deposits may provide fixed guaranteed returns. Mutual Funds investments are subject to market risk, read all scheme related documents carefully before investing. Past performance is not an indicator of future returns.

Strategy Details

A closer look at the investment thesis, portfolio construction, and current holdings.

Core Investment Theme

Core Investment Theme

Captures pricing inefficiencies across asset classes through low-risk arbitrage strategies. This approach generates consistent returns with minimal correlation to broader markets by exploiting temporary mispricings between derivatives and their underlying securities.

Broader Market View

Market Outlook

The global economic recovery remains uneven, with inflationary pressures persisting. Central banks are normalizing monetary policies, creating volatility. Opportunities exist in quality companies with pricing power.

Why This Strategy is Attractive Now

This strategy focuses on companies with strong fundamentals, competitive advantages, and the ability to pass through costs. It aims to provide a degree of resilience during periods of economic uncertainty.

Investment Style & Process

Investment Style

The portfolio exhibits characteristics of a Quality Growth approach, emphasizing companies with durable competitive advantages, consistent earnings growth, and reasonable valuations across a mix of large and mid-cap market segments.

Why it Makes Sense

In the current environment of moderating economic growth and elevated uncertainty, a Quality Growth strategy can provide exposure to companies with resilient business models, pricing power, and the ability to compound shareholder value through cycles.

High-Level Investment Process

Sourcing: The strategy appears to source investment candidates through a bottom-up, fundamental research process focused on identifying quality franchises with sustainable competitive advantages, strong management teams, and attractive growth runways. Selection: Security selection likely emphasizes companies exhibiting characteristics such as high returns on capital, robust free cash flow generation, pricing power, and reasonable valuations relative to growth prospects. Construction: Portfolio construction is consistent with a multi-cap, multi-sector approach that balances risk exposures while maintaining a bias towards quality growth opportunities across the market capitalization spectrum.
Portfolio Holdings Overview

Portfolio Holdings Overview

SectoralAllocation
Utilities6.21%
Services13.38%
Technology4.23%
Consumers13.03%
Energy & Infra8.76%
Financial Services33%
Capital Goods21.39%

Geographic Allocation

Domestic100%
Top Stock Holdings

Top Stock Holdings

CompanySectorAllocation
Cash Offset For DerivativesUtilities74.51%
Kotak Money Market Dir GrUtilities9.68%
Kotak Ultra Short Term Dir GrUtilities4.53%
Axis Bank LtdFinancial Services3.51%
HDFC Bank LtdFinancial Services2.85%
Kotak Ultra Shrt to S/T Dir GrUtilities2.77%
ICICI Bank LtdFinancial Services2.47%
Reliance Industries LtdEnergy & Infra1.99%
HDFC Bank Ltd.Utilities1.92%
Bajaj Finance LtdFinancial Services1.80%

Fund House Management

The asset management company’s track record, AUM scale, and fund manager credentials.

Fund Manager Track Record

Fund Manager Track Record

HS

Hiten Shah

Lead Portfolio Manager

Mr. Hiten Shah has experience of 20 years. Manages 38 funds at Kotak Mahindra Asset Management Co Ltd with an AUM of approximately ₹1,10,024 Cr Holds a B.com degree.

CW Expert Take
CW Expert Take

Kotak brings banking-grade risk assessment to fund management. Their strength is in identifying mispriced opportunities while maintaining portfolio quality. The equity teams focus on sustainable business models, while their debt strategies emphasize credit selection and liquidity management—reflecting the parent group's risk culture.

Team

20 years

Combined Team Experience

AUM

₹ 1,10,024 Cr

Assets Under Management

Firm OverviewFirm Overview

AMCKotak Mahindra Asset Management Co Ltd
Total AUM₹5,80,249.31 Cr

Investment Philosophy & Approach

Disciplined Approach

Disciplined Approach

Kotak AMC follows a disciplined investment approach focused on risk management.

Rigorous Research

Rigorous Research

Extensive research underpins portfolio construction to identify mispriced opportunities.

Long-Term Mindset

Long-Term Mindset

Kotak maintains a long-term perspective in capital allocation decisions.

Operational & Regulatory Details

What it costs to invest, transaction mechanics, and regulatory disclosures you should know.

iconCosts and Fees

Total Expense Ratio (TER)2.98%
Exit Load0.25%

iconRegulatory & Tax Information

INF174K01302
verified
ISIN
DailyDealing Frequency

LTCG | >1Year 12.5%% on gain above 1.25 Lakh

STCG | <1Year 20%%

Tax Implications (India)
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