Kotak Equity Savings Fund

All Cap

Hybrid

India Debt Medium Duration

Long Term

Others

Aggressive growth Investor Profile

Investor Profile

4–7 yearsInvestment Horizon

HNI, UHNI, Retail Investor, Mass AffluentTarget Segments

SEBI registered equity mutual fund suitable for all investor categoriesRegulatory Fit

Kotak Equity Savings Fund Growth mixes stocks and bonds for balanced growth and stability.

What This Strategy Does

Kotak Equity Savings Reg Gr is an equity savings fund which captures India's ₹60 trillion consumption and financialization opportunity through a balanced allocation across financials, consumer cyclicals, and industrials, deploying capital to achieve benchmark-aligned compounding.

CW Expert Research Notes

Defensive Participation

The fund has demonstrated resilience across cycles, outperforming in 10 of the past 12 years, while providing downside protection through its equity savings mandate.

Balanced Construction

The fund's construction reflects a balanced approach, with a moderate large-cap bias complemented by tactical mid-cap exposure, while the sector positioning leans towards financials and consumer cyclicals.

Diversified Risk Profile

The fund's risk profile is diversified, with a significant cash allocation acting as a buffer, while potential catalysts include policy reforms, a capex revival, and earnings momentum in the consumer and financial sectors.

Performance and Risk Analysis

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

Fund Performance

0.0% AnnuallyAlpha

+8.8% vs +9.9% benchmarkSince Inception

+9.0% vs +6.3% benchmark3Y Annualized

+9.1% vs +6.5% benchmark5Y Annualized

Kotak Equity Savings Fund

Benchmark Index

Benchmark Performance Comparison

Kotak Equity Savings Fund

NIFTY 50 + FD Returns

Risk Profile

Standard Deviation7.3%

Maximum Drawdown-5.7% | Oct 2024

Sharpe Ratio0.14

Detailed Risks

Market Risk

Potential recession triggered by aggressive rate hikes could dampen consumer demand, impacting fund's mid-cap tilt.

Liquidity Risk

Fund's significant mid-cap exposure could face liquidity stress during market sell-offs, hindering rebalancing.

Concentration Risk

Fund's large exposure to financials sector faces asset quality risks from rising interest rates.

Specific Strategy Risk

Regulatory changes to equity savings funds' tax treatment could impact product viability.

Strategy Details

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

Core Investment Theme

Delivers dynamic equity exposure balanced with debt stability. By actively adjusting the mix between stocks and bonds, this approach aims to capture market upside while mitigating downside risk. The equity component provides growth potential, while the debt allocation anchors the portfolio during volatility.

Broader Market View

Market Outlook

The equity markets appear to be in the early stages of a recovery phase following a valuation correction. Consumption trends and earnings normalization, supported by an uptick in capex and credit growth, are aligning favorably with the strategy's tilt towards consumer, financial services, and technology sectors. While risks such as competition and margin pressures persist, the present environment offers an attractive entry point.

Why This Strategy is Attractive Now

This strategy seems well-positioned to capitalize on the current market dynamics. Its balanced exposure across consumer cyclicals, defensives, financials, and technology appears aligned with sectors poised to benefit from the consumption recovery. The portfolio's diversification across around 70 holdings, including market leaders, coupled with its moderate risk profile and flexibility, could allow for risk-adjusted participation in the ongoing normalization.

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 offer a compelling combination of resilience and return potential by focusing on businesses with pricing power, strong balance sheets, and visible growth drivers.

High-Level Investment Process

Sourcing: The strategy appears to source investment ideas through a bottom-up, fundamental research process, seeking companies with sustainable competitive advantages, strong management teams, and attractive growth opportunities. Selection: The selection process suggests a preference for companies with consistent profitability, robust free cash flow generation, and reasonable valuations relative to their growth prospects and quality characteristics. Construction: Portfolio construction is consistent with a diversified, conviction-weighted approach, balancing risk management with the ability to capitalize on high-conviction ideas across market capitalizations and sectors.

Portfolio Holdings Overview

SectoralAllocation

Capital Goods11.95%

Technology9.74%

Services17.68%

Consumers21.64%

Financial Services27.43%

Utilities6.73%

Energy & Infra4.83%

Geographic Allocation

Domestic100%

Top Stock Holdings

CompanySectorAllocation

Cash Offset For DerivativesUtilities33.22%

Triparty RepoUtilities7.25%

Kotak Liquid Dir GrUtilities6.62%

Bharti Airtel LtdServices6.37%

Indus Towers Ltd Ordinary SharesServices3.61%

State Bank of IndiaFinancial Services3.10%

HDFC Bank LtdFinancial Services2.98%

NTPC LtdUtilities2.96%

Maruti Suzuki India LtdConsumers2.81%

Adani Ports & Special Economic Zone LtdCapital Goods2.49%

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.

59 years

Combined Team Experience

₹ 2,31,856 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.

Hiten Shah

Co-Portfolio Manager

Mr. Hiten Shah has experience of 13 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

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)1.75%

Exit Load1

Regulatory & Tax Information

INF174K01C78

ISIN

DailyDealing Frequency

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

STCG | <1Year 20%%

Tax Implications (India)