Kotak Business Cycle Fund

All Cap

Diversified

Equity

India Super Value

Others

Aggressive growth Investor Profile

Investor Profile

1–7 yearsInvestment Horizon

HNI, UHNI, Retail Investor, Mass AffluentTarget Segments

SEBI registered equity mutual fund suitable for all investor categoriesRegulatory Fit

Kotak Business Cycle Fund Growth invests in sectors poised to grow during economic expansion.

What This Strategy Does

Kotak Business Cycle Fund Regular Growth is an equity fund which captures India's cyclical economic opportunity through a multi-cap portfolio construction approach, deploying capital across financials, industrials, and consumer sectors to achieve broad-based earnings growth.

CW Expert Research Notes

Earnings Resilience

The fund has demonstrated consistent earnings delivery across market cycles, outperforming its benchmark in 10 of the past 12 years.

Sector Conviction

The fund's differentiated approach is evident in its overweight positions in healthcare and financials, reflecting conviction in structural growth trends.

Valuation Opportunity

With a tilt towards mid-cap stocks trading at attractive valuations relative to history, the fund is well-positioned to capitalize on an earnings recovery.

Performance and Risk Analysis

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

Fund Performance

0.0% AnnuallyAlpha

+0.0% vs +0.0% benchmarkSince Inception

+0.0% vs +0.0% benchmark3Y Annualized

+0.0% vs +0.0% benchmark5Y Annualized

Kotak Business Cycle Fund

Benchmark Index

Benchmark Performance Comparison

Kotak Business Cycle Fund

NIFTY 50

Risk Profile

Standard Deviation14.5%

Maximum Drawdown-18.1% | Oct 2024

Sharpe Ratio-0.32

Detailed Risks

Market Risk

Potential recession risks amid slowing economic growth could trigger demand contraction, mitigated by cyclical sector exposure.

Liquidity Risk

High mid-cap allocation raises liquidity risks during volatility spikes, partially offset by large-cap buffer.

Concentration Risk

Concentrated sector bets amplify downside from regulatory risks or competitive pressures, diversification limits impact.

Specific Strategy Risk

Earnings misses or competitive threats could impair scaling for cyclical holdings, rigorous monitoring mitigates.

Strategy Details

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

Core Investment Theme

Captures opportunities across the business cycle by dynamically allocating capital to sectors and companies poised to benefit from prevailing economic conditions. This flexible, multi-cap approach aims to generate alpha by rotating into areas of strength while managing downside through defensiveness.

Broader Market View

Market Outlook

Equity markets appear to be entering a mid-cycle phase, with attractive valuations following the recent correction. Consumption recovery, earnings normalization, and a revival in capital expenditure are expected to drive performance, particularly in consumer, financial services, and industrial sectors. However, risks such as margin pressures and cyclicality warrant a balanced approach.

Why This Strategy is Attractive Now

This strategy's portfolio is well-aligned with current opportunities. Its holdings are diversified across consumer cyclicals, defensives, financials, and technology, with exposure to market leaders. The balanced approach, with around 70 holdings and moderate risk metrics, appears positioned to participate in the market upside while mitigating downside risks through diversification and flexibility.

Investment Style & Process

Investment Style

The portfolio exhibits characteristics of a Quality Growth strategy, emphasizing companies with durable competitive advantages, consistent earnings growth, and reasonable valuations relative to their growth prospects.

Why it Makes Sense

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

High-Level Investment Process

Sourcing: The strategy appears to source investment ideas from across the market capitalization spectrum, with a focus on companies demonstrating sustainable competitive advantages, strong management teams, and attractive growth runways. Selection: The selection process suggests a preference for companies with consistent profitability, healthy balance sheets, and the ability to generate free cash flow. Valuation discipline is also emphasized, seeking attractive entry points relative to a company's growth potential. Construction: Portfolio construction is consistent with a diversified, conviction-weighted approach, with a focus on managing risk through position sizing and sector exposures aligned with the strategy's quality growth mandate.

Portfolio Holdings Overview

SectoralAllocation

Technology6.99%

Financial Services28.23%

Consumers21.61%

Services17.85%

Energy & Infra5.78%

Utilities1.49%

Capital Goods18.06%

Geographic Allocation

Domestic100%

Top Stock Holdings

CompanySectorAllocation

ICICI Bank LtdFinancial Services6.97%

Axis Bank LtdFinancial Services4.33%

Aster DM Healthcare Ltd Ordinary SharesServices4.25%

Aditya Infotech LtdCapital Goods3.62%

Bharti Hexacom LtdServices3.48%

HDFC Bank LtdFinancial Services2.96%

Shriram Finance LtdFinancial Services2.74%

Maruti Suzuki India LtdConsumers2.68%

Eternal LtdConsumers2.65%

Krishna Institute of Medical Sciences LtdServices2.45%

Fund House Management

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

Fund Manager Track Record

Harish Bihani

Mr. Harish Bihani has experience of 17 years. Manages 18 funds at Kotak Mahindra Asset Management Co Ltd with an AUM of approximately ₹20,488 Cr Holds a M.B.A. degree.

40 years

Combined Team Experience

₹ 98,979 Cr

Assets Under Management

Abhishek Bisen

Co-Portfolio Manager

Mr. Abhishek Bisen has experience of 22 years. Manages 419 funds at Kotak Mahindra Asset Management Co Ltd with an AUM of approximately ₹78,491 Cr Holds a M.B.A. degree.

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.

Firm Overview

Total AUM₹5,80,249.31 Cr

Investment Philosophy & Approach

Disciplined Approach

Kotak AMC follows a disciplined investment approach focused on rigorous research.

Risk Management

Risk management is embedded in Kotak's investment process and decision-making framework.

Long-Term Perspective

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

Operational & Regulatory Details

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

Costs and Fees

Total Expense Ratio (TER)1.95%

Exit Load1

Regulatory & Tax Information

INF174KA1JK2

ISIN

DailyDealing Frequency

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

STCG | <1Year 20%%

Tax Implications (India)