Mutual Fund Analysis – Kotak Opportunities Fund

Fund Manager: Anurag Jain & Krishna Sanghvi

Fund Overview

Kotak Opportunities Fund is an open-ended diversified equity fund with a flexible investment style. It invests in sectors which the fund manager believes will outperform others in the short to medium term. The fund looks well positioned to increase concentration in sectors which look promising due to its flexible investment pattern.

Investment Strategy

• The Indian economy is expected to do well over medium to long term on back of favorable demographics fueling consumption demand, growing exports, & government’s thrust on infrastructure development.

• Corporate earnings are too on a rise as is evident from the robust tax collections. It is therefore reasonable to expect India’s growth momentum to sustain over a longer period.

• Indian economy is a consumption led economy as almost 67% of India’s GDP is based on consumption, rendering sustainability to this growth engine.

• The fund has increased it exposure to banking stocks. The fund generally follows bottom-up stock picking, but it also does not hold back itself from realizing opportunities from sectors which exhibit potential.

• The fund has a blend of large & mid cap with a tilt towards large cap stocks irrespective of the mandate that the fund has to focus on sector which is currently attractive.

• Fund follows an active portfolio management strategy & rarely does it takes concentrated bets. The fund manager also believes in booking profits as & when the opportunity arises.

• According to the fund manager equity as an asset class is typically recommended for investors with a long term investment horizon.

Features of the Scheme

• Entry Load: 2.25% for < Rs. 5 Cr. and Nil for => Rs. 5 Cr.

• Exit Load: 1% if redeemed before 6 months

• Minimum Application: Rs. 5000/- & in multiples of Rs. 1000

• Investment Options: Growth and Dividend (Payout and Reinvestment)

• Benchmark Index: CNX 500.