Last Updated on December 29, 2021
This week, let us look at Kotak Emerging Equity Scheme a mid cap scheme launched in March 2007 with a current AUM of about 4000 Crores (7th the mid cap segment). If someone from Kotak AMC is reading this, please recognise that your website is badly broken. I cannot get to this schemes page, cannot download scheme documents and notices. So I had to piece this review with the information I could find here and there.
You can find the full archive of mutual fund reviews, watch the playlist of video reviews. Do you have a mutual fund that you want to be reviewed, then enter your choice here. Also, found this question on Quora: What is your fav freefincal tool If you have done, do respond!
Kotak Emerging Equity Scheme: Investment strategy
The fund was started as a mid cap and small cap fund benchmarked to BSE MidSmallCap Index and due to the SEBI categorization rules had to become a more pre-dominant midcap scheme with NIfty Midcap 100 TRI as the benchmark.
It still takes on significant small cap exposure ( 30% in Aug 2018) and currently 12%. At least at current AUM levels, this would persist for some time but also means higher volatility. It does not have an impressive since inception history with performance picking only in the last 5 years or so.
Five-year rolling returns and risk
The above trend is also seen in the five-year rolling return plot.
Risk-wise the fund has been less volatile than its current benchmark.
Comparison with peers (returns)
We shall now compare Kotak Emerging Equity with its peers in the mid cap space.
Seven years
Five years
Three years
You would hopefully agree that there is nothing spectacularly right or wrong about Kotak Emerging Equity.
Comparison with peers (returns)
In term of risk too, the fund has had a reasonable record although Franklin Prima has a better record.
Summary
I did not enjoy writing this as it was hard to get information from the AMC site. Performance-wise Kotak Emerging Equity is “okay”. Like L&T Midcap Fund (read review here) this too has turned around its performance when the market rallied toward the end of 2013.
How can I choose among these funds If I want to? To answer this, I need to insert another graph. The 3Y rolling return comparison with peers and NIfty 100 Midcap.
I would avoid Axis Midcap and HDFC Midcap Opp (I am talking like a new investor and not an existing one). I prefer performance when the chips are down. So L &T is the winner (in this window) with Kotak second and Franklin third. If you look above, there is not much difference between Kotak and L &T Funds. So it is essentially a coin toss.
Will this work in a bear market?
Just like L&T Mid Cap, I feel Kotak Emerging Equity Scheme is also untested in a bear market or a sideways market. Here Franklin Prima would score due to its large cap tilt. In any case, if you want to choose the Kotak or L&T funds, be ready for a bumpy ride.
Explore the site! Search among our 2000+ articles for information and insight!
About The Author
Dr M. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. He has over nine years of experience publishing news analysis, research and financial product development. Connect with him via Twitter or Linkedin or YouTube. Pattabiraman has co-authored three print books: (1) You can be rich too with goal-based investing (CNBC TV18) for DIY investors. (2) Gamechanger for young earners. (3) Chinchu Gets a Superpower! for kids. He has also written seven other free e-books on various money management topics. He is a patron and co-founder of “Fee-only India,” an organisation for promoting unbiased, commission-free investment advice.Use our Robo-advisory Excel Template for a start-to-finish financial plan! Now with a new demo video! ⇐ More than 1000 investors and advisors use this!
Our flagship course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! ⇐ More than 2800 investors and advisors are part of our exclusive community! Get clarity on how to plan for your goals and achieve the necessary corpus no matter what the market condition is!! Watch the first lecture for free! One-time payment! No recurring fees! Life-long access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence.
Our new course! Increase your income by getting people to pay for your skills! ⇐ More than 675 salaried employees, entrepreneurs and financial advisors are part of our exclusive community! Learn how to get people to pay for your skills! Whether you are a professional or small business owner who wants more clients via online visibility or a salaried person wanting a side income or passive income, we will show you how to achieve this by showcasing your skills and building a community that trusts you and pays you! (watch 1st lecture for free). One-time payment! No recurring fees! Life-long access to videos!
My new book for kids: “Chinchu gets a superpower!” is now available!
Must-read book even for adults! This is something that every parent should teach their kids right from their young age. The importance of money management and decision making based on their wants and needs. Very nicely written in simple terms. - Arun.Buy the book: Chinchu gets a superpower for your child!
How to profit from content writing: Our new ebook for those interested in getting side income via content writing. It is available at a 50% discount for Rs. 500 only!
Want to check if the market is overvalued or undervalued? Use our market valuation tool (will work with any index!), or you buy the new Tactical Buy/Sell timing tool!
We publish mutual fund screeners and momentum, low volatility stock screeners .every month.
About freefincal & its content policy Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on developments in mutual funds, stocks, investing, retirement and personal finance. We do so without conflict of interest and bias. Follow us on Google News. Freefincal serves more than three million readers a year (5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified from credible and knowledgeable sources before publication. Freefincal does not publish any paid articles, promotions, PR, satire or opinions without data. All opinions presented will only be inferences backed by verifiable, reproducible evidence/data. Contact information: letters {at} freefincal {dot} com (sponsored posts or paid collaborations will not be entertained)
Connect with us on social media
- Twitter @freefincal
- Subscribe to our Youtube Videos
- Posts feed via Feedburner.
Our publications
You Can Be Rich Too with Goal-Based Investing
Published by CNBC TV18, this book is meant to help you ask the right questions, seek the correct answers, and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now. It is also available in Kindle format.Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want
This book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at a low cost! Get it or gift it to a young earner.Your Ultimate Guide to Travel
This is an in-depth dive analysis into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, how travelling slowly is better financially and psychologically with links to the web pages and hand-holding at every step. Get the pdf for Rs 199 (instant download)Free android apps
- All calculators from our book, “You can be Rich Too” are now available on Google Play!
- Install the Financial Freedom App! (Google Play Store)
- Install Freefincal Retirement Planner App! (Google Play Store)
- Find out if you have enough to say "goodbye" to your employer (Google Play Store)