For every investor, spotting the right securities and mutual funds is pivotal to earning high returns. Although every mutual fund aims to beat its benchmark over a long period, not all get successful in their quest.
However, there are some funds which not only beat the benchmark index returns, but manage to deliver reasonably high return over a long period.
Here we share details on Kotak Emerging Equity Fund that gave a healthy return of 17.30 percent CAGR on its direct scheme in the past half a decade. The regular returns during the same period stood at 15.86 percent CAGR.
The scheme’s regular plan was launched on March 30, 2007, and direct plan on Jan 1, 2013.
The returns of benchmark index i.e., Nifty Midcap 150 TRI during the same period were marginally lower at 14.71 percent.
The daily assets under management (AUM) were ₹22,796.98 crore.
The fund has given a return of 21.01 percent since inception. In other words, if someone had invested ₹1,00,000 at that time, it would have grown to ₹6,36,654 while the benchmark return during the same period would have grown to ₹5,03,399.
|Time period||CAGR (%)||If invested ₹10K, it would be…|
(Source: Kotak MF; direct returns as on 14/9/2022)
If you look at the SIP returns, the fund has delivered a return of 22.11 percent in the past five returns.
In other words, if someone had invested ₹10,000 every month for past five years, the investment would have grown to ₹10.38 lakh by investing a sum of ₹6 lakh.
The fund has invested in numerous sectors including capital goods (20.25%), chemicals (13.8%), consumer durables (13.05%), financial services (11.86%), auto (8.46%) and healthcare (6.7%), among others.
The top constituent stocks of the fund are Schaeffler India, SKF India, Supreme Industries, Thermax, PI Industries, Coromandel International, Cummins India, Persistent Systems, Solar Industries and Oberoi Realty.