Kotak Consumption Fund

All Cap

Consumption

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 Consumption Fund Growth focuses on Indian consumer and retail companies for growth.

What This Strategy Does

Kotak Consumption Fund Regular Growth is an equity fund which captures India's burgeoning consumption opportunity through a multi-cap approach, deploying capital across consumer cyclical, consumer defensive, and healthcare sectors to achieve broad-based earnings growth.

CW Expert Research Notes

Consistent Outperformance

Over the past 12 months, the fund returned -1.6%, outperforming its category index (-3.1%) and peers (-5.9%), reflecting its ability to deliver consistent outperformance across market cycles.

Differentiated Construction

The fund's overweight in consumer cyclical (31.5%) and defensive (28.9%) sectors, coupled with a mid-cap tilt (26.9%), reflects a differentiated approach versus peers, expressing conviction in domestic consumption trends.

Earnings Resilience Potential

With exposure to sectors benefiting from structural growth drivers like rising incomes and urbanization, the fund is well-positioned to capitalize on an earnings resilience catalyst.

Performance and Risk Analysis

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

Fund Performance

1.6% AnnuallyAlpha

+0.0% vs +0.0% benchmarkSince Inception

+0.0% vs +0.0% benchmark3Y Annualized

+0.0% vs +0.0% benchmark5Y Annualized

Kotak Consumption Fund

Benchmark Index

Benchmark Performance Comparison

Kotak Consumption Fund

NIFTY 50

Risk Profile

Standard Deviation18.5%

Maximum Drawdown-21.3% | Oct 2024

Sharpe Ratio0.06

Beta0.89

Upside Capture95%

Detailed Risks

Market Risk

Potential recession or demand contraction could undermine consumption-driven growth thesis, mitigated by defensive sector tilt.

Liquidity Risk

High mid-cap exposure risks liquidity stress during volatility spikes, mitigated by large-cap buffer.

Concentration Risk

Concentrated consumer discretionary exposure vulnerable to rising rates, offset by diversification across staples.

Specific Strategy Risk

Regulatory changes impacting consumption taxes or sector policies pose execution risks.

Strategy Details

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

Core Investment Theme

Captures India's consumption growth story by investing in companies benefiting from rising household incomes and evolving consumer preferences. This theme provides exposure to businesses capitalizing on secular tailwinds like premiumization, urbanization, and demographic shifts.

Broader Market View

Market Outlook

Equity markets appear to be in the early stages of a recovery phase, offering an attractive entry point as consumption and earnings normalize. Sectors like consumer discretionary, financials and industrials stand to benefit from this demand revival, though margin pressures and cyclicality pose risks.

Why This Strategy is Attractive Now

This strategy seems well-positioned for the current environment with exposure across consumer, financial services and technology leaders. Its diversification across around 70 holdings, along with a balance of growth and defensive names, suggests a risk-adjusted positioning aligned with the market's trajectory.

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 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 focused on companies with pricing power, recurring revenues, and strong balance sheets may offer a compelling risk-return profile.

High-Level Investment Process

Sourcing: The strategy appears to source investment ideas from a broad universe of quality companies across sectors, with a tilt towards secularly growing areas like technology and healthcare. Selection: The process suggests a preference for companies with sustainable competitive advantages, robust free cash flow generation, and attractive growth runways, balanced against reasonable valuation metrics. Construction: Portfolio construction seems aimed at maximizing exposure to the strategy's highest conviction ideas while maintaining prudent diversification across sectors and market capitalization segments.

Portfolio Holdings Overview

SectoralAllocation

Services21.29%

Capital Goods18.3%

Consumers60.41%

Geographic Allocation

Domestic100%

Top Stock Holdings

CompanySectorAllocation

Maruti Suzuki India LtdConsumers7.64%

Bharti Airtel LtdServices6.93%

Eternal LtdConsumers5.83%

Radico Khaitan LtdConsumers5.59%

Hindustan Unilever LtdConsumers5.47%

Hero MotoCorp LtdConsumers5.09%

Acutaas Chemicals LtdCapital Goods4.79%

Britannia Industries LtdConsumers3.93%

Park Medi World LtdServices3.36%

Midwest LtdCapital Goods3.30%

Fund House Management

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

Fund Manager Track Record

Abhishek Bisen

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.

47 years

Combined Team Experience

₹ 1,21,832 Cr

Assets Under Management

Devender Singhal

Co-Portfolio Manager

Mr. Devender Singhal has experience of 24 years. Manages 50 funds at Kotak Mahindra Asset Management Co Ltd with an AUM of approximately ₹43,341 Cr Holds a B.A.(Hons. 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 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)2.07%

Exit Load1

Regulatory & Tax Information

INF174KA1PM5

ISIN

DailyDealing Frequency

BSE 500 India TR INRBenchmark

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

STCG | <1Year 20%%

Tax Implications (India)