Kotak Emerging Equity Scheme Fund Direct Growth

Kotak Emerging Equity Fund aims to invest in the stocks of companies that have the potential to grow rapidly in the future. The fund has a higher exposure towards small and mid-cap companies which generally have a higher growth potential but also come with elevated risk factors. These companies may operate in various sectors such as manufacturing, technology, healthcare, consumer goods, etc.

Investors who are looking to invest in the Indian equity market and willing to take higher risks in exchange for potentially higher returns may consider investing in the Kotak Emerging Equity Fund.

1. Kotak Emerging Equity Scheme Fund Direct Growth has ₹49092 Cr worth of assets under management (AUM) as on Jan 2025 and is more than category average.
2. The fund has an expense ratio 0.4.
   

Kotak Emerging Equity Scheme Fund Direct Growth has given a CAGR return of 20.20% since inception. Over the last 1, 3 and 5 years the fund has given a CAGR return of 10.42%, 19.82% and 22.85% respectively.

Kotak Emerging Equity Scheme Fund Direct Growth has allocated its funds majorly in Cash Equivalent, Industrial, Tech, Basic Materials, Consumer Cyclical, Financial Services, Health, Energy, Real Estate, Communication, Corporate, Consumer Defensive, Utilities, Government. Its top holdings are Mphasis Ltd, Ipca Laboratories Ltd, Fortis Healthcare Ltd, Oberoi Realty Ltd, Oracle Financial Services Software Ltd

As it is a mid-cap mutual fund the taxation is as follows:
For short term (less than a year) capital gains will be taxed at 20%
For long term (more than 1 year) capital gains will be taxed at 12.5% without indexation benefit
Dividends will always be taxed at slab rate. Long term gains upto Rs 1 lakh are exempt capital gains tax.

The investment objective of the scheme is to generate long-term capital appreciation from a portfolio of equity and equity related securities, by investing predominantly in mid companies. The scheme may also invest in debt and money market instruments, as per the asset allocation table. There is no assurance that the investment objective of the scheme will be achieved.

Minimum investment for lump sum payment is INR 100.00 and for SIP is INR 100.00. Kotak Emerging Equity Scheme Fund Direct Growth has no lock in period.