Kotak Small Cap Fund Idcw Payout

About Kotak Small Cap Fund – IDCW Payout

Kotak Small Cap Fund – IDCW Payout is a mutual fund scheme that invests in small-cap companies with high growth potential. The scheme aims to provide regular income to investors by declaring dividends from time to time. The scheme follows a bottom-up approach to select stocks across sectors and industries based on their fundamentals, valuations, and growth prospects. The scheme is suitable for investors who are looking for long-term capital appreciation along with income generation and who have a high-risk appetite.

Key Parameters

Here are some key parameters of Kotak Small Cap Fund – IDCW Payout:

• The fund has 95.41% investment in domestic equities, of which 3.35% is in Large Cap stocks, 16.81% is in Mid Cap stocks, and 62.62% in Small Cap stocks.
• The fund has an expense ratio of 0.45%.
• The NAV of Kotak Small Cap Fund – IDCW Payout as of May 5, 2023, is INR 51.886.
• The fund has INR 24407 Cr worth of assets under management (AUM) as of March 31, 2023, and is more than the category average.

Taxation

The scheme offers two options for investors: growth and income distribution cum capital withdrawal (IDCW). The IDCW option allows investors to receive regular dividends from the scheme, subject to tax implications. The taxation of Kotak Small Cap Fund – IDCW Payout depends on the holding period and the number of dividends the investor receives.

• Holding period: The holding period is 12 months for equity mutual funds. If the units are sold within 12 months of purchase, the capital gains are short-term and taxed at 15%. If the units are sold after 12 months of purchase, the capital gains are long-term and taxed at 10% (plus surcharge and cess) if they exceed Rs. 1 lakh in a financial year.
• Dividends: The dividends received from Kotak Small Cap Fund – IDCW Payout are not tax-free in the hands of the investor. They are added to the investor’s income and taxed as per their applicable slab rate.

Holdings

The holdings of Kotak Small Cap Fund – IDCW Payout reflect the fund’s objective of investing predominantly in small-cap companies with strong growth prospects and reasonable valuations, along with providing regular income to the investors by declaring dividends occasionally. The holdings of Kotak Small Cap Fund – IDCW Payout:

• The fund has 95.41% investment in domestic equities, of which 3.35% is in Large Cap stocks, 16.81% is in Mid Cap stocks, and 62.62% in Small Cap stocks.
• The fund has exposure to various sectors such as Consumer Durables, Industrial Products, Auto Components, Chemicals and Petrochemicals, Retailing, IT – Services, Construction, Transport Services, Pharmaceuticals, Biotechnology, Textiles, Apparel, etc.
• The fund has a diversified portfolio of 72 stocks as on April 30, 2023. The top 10 holdings are Sheela Foam Ltd., Persistent Systems Ltd., JK Cement Ltd., Supreme Industries Ltd., Sonata Software Ltd., Aarti Industries Ltd., Ramco Cements Ltd., Persistent Systems Ltd., Tube Investments of India Ltd., and Bharat Electronics Ltd.

Returns

The fund has generated impressive returns in the past, especially in the last three years. The fund has given a return of 215.81% in the last three years, compared to its benchmark, which has given a return of 144.84%, and its category average, which has given a return of 144.11% in the same period. The fund has also outperformed its peers in the last five years and ten years, ranking fourth among 17 and 12 funds, respectively. The returns potential of Kotak Small Cap Fund – IDCW Payout depends majorly on small-cap companies with strong growth potential and reasonable valuations, along with regular income, by declaring dividends from time to time.

Investment Objective of Kotak Small Cap Fund – IDCW Payout

The investment objective of Kotak Small Cap Fund – IDCW Payout is to generate long-term capital appreciation by investing predominantly in equity and equity-related securities of small-cap companies. The fund also aims to provide regular income to investors by declaring dividends from time to time.

Small-cap companies are those companies that rank below the top 250th company in terms of market capitalisation. These companies have the potential to grow faster than large and mid-cap companies, but they also carry higher risks and volatility. The fund manager follows a bottom-up approach to select quality small-cap companies with strong growth prospects and reasonable valuations.

The fund has an option to pay dividends to the investors on a periodic basis, subject to the availability of distributable surplus. The dividend option is suitable for investors seeking regular income and capital appreciation from their investments. The fund has declared dividends in the past, but there is no assurance or guarantee that it will do so in the future.

Minimum Investment and Lock-in Period

Kotak Small Cap Fund – IDCW Payout is a mutual fund scheme offered by Kotak Mahindra Asset Management Company. The minimum investment amount for this scheme is INR 500 for SIP, and there is no lock-in period.

Kotak AMC

Kotak Mahindra Asset Management Company (AMC) is one of India’s leading mutual fund houses. It began operations in December 1998 and was the first AMC to offer a dedicated gilt fund for investing solely in Government securities. Kotak AMC provides mutual fund and portfolio management services under SEBI (‘Mutual Funds’) Regulations, 1996, and SEBI (Portfolio Manager) Regulations, 1993. Kotak Mutual Fund offers a broad range of funds with varying risk parameters and investment themes that cater to the needs of different customer segments.