Kotak Multicap Fund – Direct Growth

The Kotak Multi Cap Fund is a diversified equity scheme launched on September 29, 2021, with a benchmark of Nifty 500 Multicap 50:25:25 Total Return Index. It manages nearly Rs 4125 crores of total assets under it. This fund is being managed by Mr. Harsha Upadhyaya, Mr. Abhishek Bisen, Mr. Devender Singhal, and Mr. Arjun Khanna.

Pros & Cons

How to invest?

5paisa makes it convenient and easy for investors to make investment transactions in the Kotak Multi Cap fund, regardless of their experience or finances. The procedure is simplified, taking only a small period of time to be completed, and does not include much complex paperwork at any point because most of it is online and virtual.

Investing in the Kotak Multi Cap fund requires a healthy amount of wealth on the investor’s part, as the market of this fund is highly risky. Only if you are a conditioned and well-versed investor should you proceed.

What is the expense ratio of the Kotak Multi Cap Fund?

When it comes to the Kotak Multi Cap fund, the Expense Ratio is the proportion visualising the yearly fees to be obligatorily paid to the Kotak company for the firm’s management of the shareholder’s interests in the fund.

Who should invest?

According to SEBI regulations, investors in Kotak Multi Cap funds do not need to be particular and scrupulous in their approach to investment. Based on market capitalisation, a large-cap fund can only invest in the stocks of the top 100 firms.

Along similar lines, small-cap funds can invest in companies that are ranked below 250 and below so. But Kotak Multi Cap fund may overlook this criterion without a problem.

Investors choosing Kotak Multi Cap funds are exposed to the many risks which come with dabbling in the stock market. In the short and medium-term markets, there can be much volatility. Thus, investors need to be aware of these before considering investments in Kotak Multi cap.

It is also essential that investors have to set out a clearly outlined investment path and strategy while investing in the Kotak Multi Cap fund.

What are the benefits of investing in the Kotak Multi Cap Fund?

• Since its inception, the Kotak Multi Cap Fund has consistently returned an average of 6.73% annually for its investors (CAGR).
• To date, no investor has, for at least five years, experienced a loss in their positions. Over a 5-year time horizon, the fund has provided a minimum return of 10%, palpably above its benchmark.
• Since markets are at an all-time high, investors get confused as to where to invest their precious money. Kotak Multi Cap fund helps them to choose the stability of Large-cap funds while getting the benefits of small and mid-cap categories.
• Kotak Multicap Fund gives investors the features and power of all the diverse cap funds in a unified package. This fund invests in the optimal combination of large-cap, mid-cap, and small-cap stocks that coordinate collectively as a dream team and create win-win opportunities for the investor.
• This fund is highly adjustable. When the economy is booming, the fund manager can select higher exposure in small-cap and mid-cap stocks so as to take advantage of their rapid growth. On the other hand, when the economy is in recession, a higher exposure in large-cap stocks may be easily chosen.