Kotak Select Focus Fund

Type or nature of fund

Kotak Select Focus is an open ended equity scheme.

Investment objective

The investment objective of Kotak Select Focus scheme is to generate long term capital appreciation from a diversified portfolio of equity and equity related instruments, focusing on select sectors.

Fund information

Inception date 11 September, 2009
CRISIL rank Scheme is ranked 2 under diversified equity funds as on June 2015.
Plans Regular and Direct.
Options Dividend Growth
Schemes
  • Direct Dividend
  • Direct Growth
  • Dividend
  • Growth
Entry load Nil
Exit load
  • For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment: 1%
  • For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: NIL
  • Any exit load charged (net off Service Tax, if any) shall be credited back to the respective Scheme (applicable for all plans).
  • Units issued on reinvestment of dividends shall not be subject to exit load (applicable for all plans).
Minimum investment

Minimum Investment: Rs.5,000 and in middle of Re.1 for purchase and for Re.0.01 for switches

Additional Purchase: Rs.1000/- and in multiples of Re. 1 for purchases and of Re. 0.01 for switches

SIP SIP Purchase: Rs.500/- (Subject to a minimum of 10 SIP instalments of Rs.500/- each)
Product label – Risk and target investors

Risk : Moderately high risk

Target Investors: This product is suitable for investors who are seeking Long term capital growth and investment in portfolio of predominantly equity & equity related securities generally focussed on a few selected sectors.

Benchmark

CNX 200 is the benchmark.

CNX 200 Index is designed to reflect the behaviour and the performance of the top 200 companies measured by free float market capitalization.

SWP

Yes, SWP facility is available on a Monthly and Quarterly basis.

Fixed Sum or Entire Appreciation is available on the SWP Dates, which are 1st, 7th, 14th, 21st and 25th.

STP Ye, STP facility is available on a Weekly, Monthly and Quarterly basis and the Fixed Sum or Entire Appreciations is available on any business day.
Redemption

Minimum Redemption size:

In Rupees (Non- SWP/STP): Rs.1000/

In Units (Non-SWP/STP): 100 units

In Rupees (SWP/STP): Rs.1000/- (Subject to a minimum of 6 instalments) / Entire Appreciation

The entire amount/units will be redeemed from the Scheme, if the holding is less than Rs.1000 or 100 units, after processing the redemption request.

Taxation (on investment and on redemption) Individuals need to consult with their tax adviser to consult on the tax implications arising out of his participation in this scheme.

Fund manager

Mr. Harsha Upadhyaya is the fund manager of Kotak Select Focus Fund. He is 43 years old. He has a Bachelor’s degree in Mechanical Engineering from National Institute of Technology, Suratkal 1993. He finished his Post-Graduate Management in Finance from Indian Institute of Management, Lucknow 1996. He is a Chartered Financial Analyst from the CFA Institute.

Mr. Harsha Upadhyaya has over 17 years of rich experience spread over Equity Research & Fund Management. He was previously associated with DSP BlackRock Investment Managers, Prabhudas Lilladher Pvt. Ltd, SG Asia Securities, Reliance Group and UTI Asset Management Co. Ltd. He now handles Kotak Opportunities and Kotak Select Focus Fund.

Investment philosophy or strategy

The scheme will invest in equity and equity linked instruments across companies irrespective of their market capitalisations to achieve the investment objective. Fund Manager will in selected sectors which he sees as a potential. It would be a concentrated strategy but managed actively. There won’t be any restrictions in terms of investments in a single sector. The sectors will be selected based on the growth prospect and valuations of businesses over medium to long term at the fund manager’s description. Fund manager follows the sector classification suggested by AMFI.

Portfolio – Sector / Top 10 holdings

Company Sector Percentage
Infosys Ltd. Software 5.47%
HDFC Bank Ltd. Banks 5.28%
Larsen and Tourbo Ltd. Construction Project 4.43%
Axis Bank Ltd. Banks 4.28%
Maruti Suzuki India Ltd. Auto 3.83%
State Bank of India Banks 3.60%
ICICI Bank Ltd. Banks 3.47%
Ultratech Cement Ltd. Cement 3.41%
Max India Ltd. Finance 3.09%
Bharath Electronics Ltd. Industrial Capital Goods 2.74%

Risk measures

Sharpe As on 31st July, 2015. Source: Value Research it is 1.29.
Alpha NA.
Beta As on 31st July, 2015. Source: Value Research it is 1.02.
Standard Deviation As on 31st July, 2015. Source: Value Research it is 14.67%.

Performance

AUM for April- June 2015 Rs.2,666.89 crores
NAV (as on 31st July, 2015) Dividend – Rs.20.4980 Direct Dividend – Rs.20.9380 Growth – Rs.24.0600 Direct Growth – Rs.24.5630
Returns and Benchmark comparison
Date Scheme returns CNX 500 CNX Nifty
Since Inception (September 11, 2009) 15.32 10.04 16.21
30th June, 2014- 30th June, 2015 26.40 11.57 9.95
30th June, 2013- 30th June, 2014 43.12 34.02 30.28
30th June, 2012- 30th June, 2013 11.41 9.51 10.67
Expenses
Daily Net assets Kotak Focus Fund expenses
First 100 crores 2.50%
Next 300 crores 2.25%
Next 300 crores 2%
Balance assets 1.75%

Expert view of the fund + outlook

Kotak Select Focus Fund is a diversified multi cap fund this means that most of your money will be invested in stocks of large, medium and small-sized firms. This fund is suitable for child’s education, child’ marriage, planning for retirement and home purchase. The fund is not at all suitable for creating wealth, for lifestyle needs and for short term needs. With the growing Indian economy, the companies perform well and their stock prices will follow their performances. Hence if the economy’s growth is expected to grow at 8 percent, then the top performing funds will give you a return in excess of 14 percent. Now is the good time to invest. Instead of trying to time the market especially if it is a SIP. Mutual Fund is unlike stock, the mutual fund scheme manager will look into the stocks for you. If you have made a decision on the investment, then go ahead and invest. But, do not remove the money when the markets go up or down. Stick to your goals.

How to apply – online + distributors

You can buy the Kotak Select Focus Fund through both the online and offline route.

For the online application, if you are an existing investor, then you can login with your existing pin or without the pin. The new investors can make a new purchase. The new investor can be a single applicant or a joint applicant or either or a survivor. To start an investment, you will need to fill in the PAN card details and your date of birth. If you wish to find out more about the fund then you can just drop in your name and your contact detail and an executive will get in touch with you at the earliest.

To apply offline, you will have to physically approach the Kotak branch and submit your KYC form if you are a new investor. You will then have to fill up all the application forms and then submit the form at the respective counter.

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