Kotak Midcap Fund

Diversified

Equity

India Growth

Mid Cap

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 Emerging Equity Scheme Growth invests in mid-size Indian companies, balancing growth and risk.

What This Strategy Does

Kotak Midcap Fund Growth is an equity mid-cap fund which captures India's emerging growth leaders through a disciplined GARP approach, deploying capital across industrials, healthcare, and consumer sectors to achieve broad-based earnings growth.

CW Expert Research Notes

Resilient Outcome Delivery

The fund has demonstrated consistent benchmark-relative outperformance, delivering returns in the top quartile of its category in 9 out of the past 12 years, reflecting resilience across market cycles.

Differentiated Portfolio Construction

The fund's GARP-oriented approach, with a focus on quality businesses, competent management, and sustainable growth, results in a distinct portfolio composition versus peers, including underweights in sectors like financials due to stock-specific risk controls.

Balanced Risk Profile

While the fund's quality bias positions it to participate in structural growth trends, its valuation discipline and diversified construction help mitigate downside risks, providing a balanced exposure within a mid-cap allocation.

Performance and Risk Analysis

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

Fund Performance

2.5% AnnuallyAlpha

+15.6% vs +9.9% benchmarkSince Inception

+16.2% vs +6.3% benchmark3Y Annualized

+15.8% vs +6.5% benchmark5Y Annualized

Kotak Midcap Fund

Benchmark Index

Benchmark Performance Comparison

Kotak Emerging Equity Fund

NIFTY 50

Risk Profile

Standard Deviation20.4%

Maximum Drawdown-20.4% | Oct 2024

Sharpe Ratio0.46

Beta0.95

Upside Capture91%

Detailed Risks

Market Risk

Potential recession driven by slowing global growth could trigger demand contraction, impacting mid-cap earnings; portfolio's mid-cap tilt mitigates downside.

Liquidity Risk

Volatility spikes or market dislocations could impair mid-cap liquidity, hindering rebalancing; large-cap buffer provides liquidity cushion.

Concentration Risk

Concentrated mid-cap exposure amplifies risks from IT sector headwinds or regulatory tightening; diversification across sectors limits downside impact.

Specific Strategy Risk

Competitive pressures or policy changes could disrupt mid-cap growth runway; rigorous fundamental research identifies sustainable compounders.

Strategy Details

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

Core Investment Theme

Delivers exposure to India's dynamic mid-cap segment, capturing the growth potential of established yet underappreciated businesses. This flexible approach allows managers to rotate capital toward the best opportunities across market cycles, whether defensiveness in quality franchises or growth capture in emerging leaders. The impact is a smoother return profile with lower drawdowns compared to pure small-cap strategies, while still participating in India's entrepreneurial expansion.

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 geared towards domestic demand such as consumer, financials and industrials stand to benefit from this environment, although margin pressures and cyclicality pose risks.

Why This Strategy is Attractive Now

This strategy appears well-positioned for the current market landscape with exposure across consumer cyclicals/defensives, financials and technology. The portfolio's diversification across around 70 holdings, including market leaders, coupled with a moderate risk profile could allow it to capitalize on the recovery while providing resilience.

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 long-term potential.

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 upside participation, balancing defensive attributes with exposure to secular growth opportunities.

High-Level Investment Process

Sourcing: The strategy appears to focus on companies with strong franchises, sustainable competitive moats, and attractive growth runways, sourced through rigorous fundamental research and analysis. Selection: The selection process suggests a preference for businesses with robust financial profiles, consistent profitability, and the ability to compound earnings at an attractive rate over an extended period, while maintaining a disciplined valuation framework. Construction: Portfolio construction is consistent with a focus on diversification across sectors and market capitalization segments, while allowing higher conviction in select holdings based on the team's highest-conviction ideas and risk management considerations.

Portfolio Holdings Overview

SectoralAllocation

Capital Goods28.35%

Technology9.89%

Consumers16.36%

Energy & Infra3.34%

Services14.91%

Financial Services27.15%

Geographic Allocation

Domestic100%

Top Stock Holdings

CompanySectorAllocation

GE Vernova T&D India LtdCapital Goods4.89%

Fortis Healthcare LtdServices4.08%

Ipca Laboratories LtdServices2.98%

Mphasis LtdTechnology2.84%

KEI Industries LtdCapital Goods2.80%

Indian BankFinancial Services2.45%

Solar Industries India LtdCapital Goods2.42%

Vishal Mega Mart LtdConsumers2.34%

Oracle Financial Services Software LtdTechnology2.29%

Bharat Electronics LtdCapital Goods2.28%

Fund House Management

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

Fund Manager Track Record

Atul Bhole

Mr. Atul Bhole has experience of 21 years. Manages 12 funds at Kotak Mahindra Asset Management Co Ltd with an AUM of approximately ₹60,480 Cr Holds a B.Com degree.

21 years

Combined Team Experience

₹ 60,480 Cr

Assets Under Management

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

Quality-Growth Focus

Kotak AMC follows a growth-at-reasonable-price (GARP) philosophy, seeking quality businesses with sustainable earnings potential.

Disciplined Approach

The fund employs a structured bottom-up process focused on capital efficiency, governance, and valuation discipline.

Long-Term Orientation

The investment strategy is anchored in a patient, buy-and-hold mindset suited for the mid-cap segment.

Operational & Regulatory Details

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

Costs and Fees

Total Expense Ratio (TER)1.4%

Exit Load1

Regulatory & Tax Information

INF174K01DS9

ISIN

DailyDealing Frequency

Nifty Midcap 150 TR INRBenchmark

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

STCG | <1Year 20%%

Tax Implications (India)