Kotak Emerging Equity Fund Idcw

Kotak Emerging Equity Fund – IDCW: Overview

The Kotak Emerging Equity Fund – IDCW is an open-ended long-term strategy with a major focus on the financial and information technology sectors. This scheme is excellent for investors who are well-versed in the risks associated with a diversified portfolio and have a proclivity for making selected bets for higher returns than other equity funds. At the same time, even if the overall market is performing well, investors should be prepared for moderate to severe investment losses.

Key Parameters

A minimum commitment of Rs. 100 is required for the Kotak Emerging Equity Fund – IDCW, with further commitments in multiples of Rs. 100. The expense ratio of the fund is 0.41%, including GST. This fee is charged to investors to cover fund administration costs. If redeemed within a month or 30 days after the allocation date, the exit burden is 1% for 10% of investments. The remaining investments are exempt. Due to the lack of a lock-in period, investors may redeem their funds at any moment.

Taxation

If an investor sells one year after the acquisition date of the Kotak Emerging Equity Fund – IDCW, tax will be implied on the Long-Term Capital Gains (LTCG). If the LTCG exceeds Rs. 1 lakh, a 10% tax rate is applicable. There is no mention of a suitable fee or cess. Short-term Capital Gains (STCG) are obtained by an investor if property sales occur within a year of purchase. The current tax rate, excluding any cess or levy, is 15%.

Holdings

The Kotak Emerging Equity Fund – IDCW – invests heavily in the technology sector. An investor receives a well-diversified portfolio that includes assets in financial services, information technology, consumer services, oil, gas, and consumable fuels, as well as automobiles and auto components. The following are the top holdings of the Kotak Emerging Equity Fund – IDCW:

• Supreme Industries Ltd.
• Persistent Systems Ltd.
• JK Cement Ltd.
• Kajaria Ceramics Ltd.
• Oberoi Realty Ltd.
• Whirlpool of India Ltd.
• ICICI Bank Ltd.
• AU Small Finance Bank Ltd.
• Bata India Ltd.
• The Federal Bank Ltd.

Returns

The Kotak Emerging Equity Fund – IDCW has delivered great returns ever since its inception. Annualised returns over the last five years stand at 15.58%. They have been 30.20% over the previous three years. It should be noted that mutual fund returns are subject to market risks and that previous performance cannot be used to forecast future returns.

Investment Objective of Kotak Emerging Equity Fund – IDCW

The investment objective of the Kotak Emerging Equity Fund – IDCW is to achieve LTCG by investing in a diversified portfolio primarily consisting of large-cap equity and equity-related securities, including derivatives. The fund invests 92.04% in domestic equities, of which 6.27% and 53.19% are in large and mid-cap stocks, respectively. However, there is no guarantee that the scheme’s investment goal will be met.

Minimum Investment and Lock-in Period

A minimum investment of Rs. 100 and a minimum SIP of Rs. 100 are required for the Kotak Emerging Equity Fund – IDCW, with successive multiples of Rs. 100. Investors can withdraw their money whenever they wish because there is no lock-in period. The Kotak Emerging Equity Fund – IDCW is an excellent choice for investors who do not want to be bound by a lock-in term.

AMC Information

Kotak Emerging Equity Fund is one of the top ten asset management firms in India. It was founded in 2013. This AMC is one of India’s fastest-growing mutual fund companies. As of May 18th, 2023, the company’s AUM was Rs 25,971.71 crore. The AMC has grown significantly since then.