Kotak Emerging Equity Scheme Fund Direct Growth

Kotak Emerging Equity Fund - Direct was launched on 30 March 2007. The fund invests in mid-cap companies. As per SEBI, mid-cap companies include companies that rank 101st to 250th on the stock exchange as per their market capitalization. 

The fund follows Nifty Midcap 150 TRI as its benchmark index. This helps them measure their performance against a broader market of mid-cap companies. They invest at least 65% of their assets in mid-cap companies that represent emerging businesses, the remaining 35% in REITs, InvITs, overseas securities, debt and money market instruments.

Investment Strategy

Kotak Emerging Funds’ portfolio is built on a bottom-up selection method. This method includes selecting stocks on the basis of their business model, opportunities and growth. The fund also filters stocks on the basis of BMV (Business Management and Valuation) framework. They believe in choosing stocks that are on a material discount to their intrinsic value. This helps them pick mid-cap companies in the emerging stage of business and that has rapid-growth potential.

Taxation on HDFC Defence Fund

Tax on your gains from the Kotak Emerging Direct Fund depends on how long you have held the fund for. All equity mutual funds sold within 12 months are considered Short-term Capital Gain (STCG) and investments sold after 12 months are considered Long-term Capital Gain (LTCG). The taxes are as follows:

• Long-term Capital Gain: Exemption of up to ₹1,25,000 and then 12.5%
• Short-term Capital Gain: 20% 

Who Invests in Kotak Emerging Equity Fund? 

This fund is suited for investors looking to benefit from the growth potential of mid-sized companies. Ideal for long-term investors with a high-risk appetite, who are comfortable with market volatility and can withstand periodical market fluctuations.

Allocation & Historical Returns

The fund presently maintains a strong focus on Healthcare, Financials, Technology, Chemicals, etc.

Currently, the fund's portfolio comprises 13.9% small-cap stocks, 12.68% large-cap stocks, and 67.45% mid-cap stocks.

With an AUM of ₹53464.0 crores, Kotak Emerging Equity Scheme Fund Direct Growth generated a return of 5.6% in 1 year, 28.9% in 3 years, 32.3% in 5 years. while its benchmark index (Nifty Midcap 150) generated 2.6% in 1 year, 29.8% in 3 years, and 31.2% in 5 years.