{"id":5603,"date":"2023-07-21T04:40:16","date_gmt":"2023-07-21T04:40:16","guid":{"rendered":"https:\/\/blog.certifiedfinancialguardian.com\/?p=5603"},"modified":"2023-07-21T04:40:17","modified_gmt":"2023-07-21T04:40:17","slug":"mutual-fund-weekly-analysis-kotak-small-cap-fund","status":"publish","type":"post","link":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/2023\/07\/21\/mutual-fund-weekly-analysis-kotak-small-cap-fund\/","title":{"rendered":"Mutual Fund Weekly Analysis: Kotak Small Cap Fund"},"content":{"rendered":"\n

Welcome to PersonalFN’s weekly analysis<\/a> on diversified equity mutual funds<\/a>! In this issue, we have analysed Kotak Small Cap Fund<\/a><\/strong>, highlighting its performance, peer comparison, investment strategy, fundamentals, portfolio, and suitability.<\/p>\n\n\n\n

Kotak Small Cap Fund is a Small Cap Fund<\/a> that has registered exceptional growth in the last few years and currently stands among the top quartile performers over long-term time frames.<\/p>\n\n\n\n

[Read: <\/strong>Market at All-time High: Is This a Good Time to Invest in Mid Cap and Small Cap Mutual Funds?<\/a>]<\/p>\n\n\n\n

Growth of Rs 10,000 if invested in Kotak Small Cap Fund 5 years ago<\/em><\/strong><\/p>\n\n\n\n

\"Graph<\/p>\n\n\n\n

Past performance is not an indicator of future returns
July 18, 2023
(Source: ACE MF)\u00a0<\/p>\n\n\n\n

Kotak Small Cap Fund is a Small Cap Fund that invests in small-sized companies having the potential to become future large-caps. Originally launched as a Mid Cap Fund in February 2005, the fund was repositioned and renamed as Kotak Small Cap Fund in June 2018 to align with SEBI\u2019s mutual fund categorisation norms. The fund now holds a small-cap-biased portfolio, though it still holds significant exposure to mid-caps. Kotak Small Cap Fund has registered extraordinary growth under its current investment mandate by outpacing its benchmark Nifty Smallcap 250 \u2013 TRI by a remarkable margin. Meanwhile, it has also outperformed many of its peers over the long run. With a compounded annualised return of around 22.5% over the past 5 years, Kotak Small Cap Fund has generated an alpha of around 7 percentage points in CAGR. Notably, the benchmark Nifty Smallcap 250 \u2013 TRI index has appreciated at a CAGR of 15.3% during this period. An investment of Rs 10,000 in Kotak Small Cap Fund 5 years back would have appreciated to Rs 27,583. A simultaneous investment in the benchmark would now be worth Rs 20,361 over the same period. The fund manager, Mr Pankaj Tibrewal, has proven his ability to timely identify and capture available opportunities in the small-cap space and create significant wealth for long-term investors in the fund.<\/p>\n\n\n\n

Kotak Small Cap Fund’s performance vis-\u00e1-vis category peers<\/em><\/strong><\/p>\n\n\n\n

\n
\n\n\t\n\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t
Scheme Name<\/b><\/td>\n\t\t\tCorpus (Cr.)<\/b><\/td>\n\t\t\t1 Year<\/b><\/td>\n\t\t\t2 Year<\/b><\/td>\n\t\t\t3 Year<\/b><\/td>\n\t\t\t5 Year<\/b><\/td>\n\t\t\t7 Year<\/b><\/td>\n\t\t\tStd Dev<\/b><\/td>\n\t\t\tSharpe<\/b><\/td>\n\t\t<\/tr>\n\t\t
Quant Small Cap Fund<\/a><\/td>\n\t\t\t5,565<\/td>\n\t\t\t40.88<\/td>\n\t\t\t18.50<\/td>\n\t\t\t57.63<\/td>\n\t\t\t28.05<\/td>\n\t\t\t21.07<\/td>\n\t\t\t24.79<\/td>\n\t\t\t0.53<\/td>\n\t\t<\/tr>\n\t\t
Nippon India Small Cap Fund<\/a><\/td>\n\t\t\t31,945<\/td>\n\t\t\t38.45<\/td>\n\t\t\t22.38<\/td>\n\t\t\t47.96<\/td>\n\t\t\t24.10<\/td>\n\t\t\t23.39<\/td>\n\t\t\t19.11<\/td>\n\t\t\t0.55<\/td>\n\t\t<\/tr>\n\t\t
HSBC Small Cap Fund<\/a><\/td>\n\t\t\t10,129<\/td>\n\t\t\t32.82<\/td>\n\t\t\t19.90<\/td>\n\t\t\t45.21<\/td>\n\t\t\t18.31<\/td>\n\t\t\t18.41<\/td>\n\t\t\t18.30<\/td>\n\t\t\t0.54<\/td>\n\t\t<\/tr>\n\t\t
Canara Rob Small Cap Fund<\/a><\/td>\n\t\t\t6,587<\/td>\n\t\t\t23.00<\/td>\n\t\t\t19.02<\/td>\n\t\t\t44.97<\/td>\n\t\t\t—<\/td>\n\t\t\t—<\/td>\n\t\t\t18.36<\/td>\n\t\t\t0.55<\/td>\n\t\t<\/tr>\n\t\t
HDFC Small Cap Fund<\/a><\/td>\n\t\t\t18,999<\/td>\n\t\t\t42.11<\/td>\n\t\t\t19.34<\/td>\n\t\t\t44.66<\/td>\n\t\t\t19.16<\/td>\n\t\t\t20.52<\/td>\n\t\t\t18.95<\/td>\n\t\t\t0.52<\/td>\n\t\t<\/tr>\n\t\t
ICICI Pru Smallcap Fund<\/a><\/td>\n\t\t\t6,047<\/td>\n\t\t\t26.15<\/td>\n\t\t\t16.67<\/td>\n\t\t\t44.09<\/td>\n\t\t\t22.41<\/td>\n\t\t\t18.58<\/td>\n\t\t\t17.99<\/td>\n\t\t\t0.55<\/td>\n\t\t<\/tr>\n\t\t
Tata Small Cap Fund<\/a><\/td>\n\t\t\t5,233<\/td>\n\t\t\t36.66<\/td>\n\t\t\t20.44<\/td>\n\t\t\t43.80<\/td>\n\t\t\t—<\/td>\n\t\t\t—<\/td>\n\t\t\t17.31<\/td>\n\t\t\t0.56<\/td>\n\t\t<\/tr>\n\t\t
Edelweiss Small Cap Fund<\/a><\/td>\n\t\t\t1,946<\/td>\n\t\t\t31.15<\/td>\n\t\t\t18.18<\/td>\n\t\t\t43.62<\/td>\n\t\t\t—<\/td>\n\t\t\t—<\/td>\n\t\t\t18.17<\/td>\n\t\t\t0.53<\/td>\n\t\t<\/tr>\n\t\t
Kotak Small Cap Fund<\/a><\/td>\n\t\t\t10,830<\/td>\n\t\t\t23.42<\/td>\n\t\t\t14.50<\/td>\n\t\t\t43.56<\/td>\n\t\t\t22.48<\/td>\n\t\t\t19.81<\/td>\n\t\t\t17.77<\/td>\n\t\t\t0.54<\/td>\n\t\t<\/tr>\n\t\t
Bank of India Small Cap Fund<\/a><\/td>\n\t\t\t541<\/td>\n\t\t\t29.83<\/td>\n\t\t\t15.11<\/td>\n\t\t\t43.47<\/td>\n\t\t\t—<\/td>\n\t\t\t—<\/td>\n\t\t\t19.06<\/td>\n\t\t\t0.51<\/td>\n\t\t<\/tr>\n\t\t
Nifty Smallcap 250 – TRI<\/td>\n\t\t\t<\/td>\n\t\t\t29.86<\/td>\n\t\t\t11.03<\/td>\n\t\t\t38.43<\/td>\n\t\t\t15.27<\/td>\n\t\t\t14.07<\/td>\n\t\t\t21.07<\/td>\n\t\t\t0.41<\/td>\n\t\t<\/tr>\n\t<\/tbody>\n<\/table>\n<\/div>\n<\/center>\n\n\n\n

The securities quoted are for illustration only and are not recommendatory.
Returns are point to point and in %, calculated using the Direct Plan-Growth option. Those depicted over 1-Yr are compounded annualised.
Data as on July 18, 2023
(Source: ACE MF)
Please note, this table only represents the best-performing funds based solely on past returns and is NOT a recommendation. Mutual Fund investments are subject to market risks. Read all scheme-related documents carefully before investing. Past performance is not an indicator for future returns. The percentage returns shown are only for indicative purposes.<\/strong><\/p>\n\n\n\n

Kotak Small Cap Fund holds an impressive track record of generating market-beating returns over the long term. In the last 2-year and 3-year, period Kotak Small Cap Fund has outpaced its benchmark Nifty Smallcap 250 – TRI by around 3.5-5 percentage points and outpaced some of its peers. Even though the fund has trailed the benchmark and the category average in the last one year, its long-term performance remains intact. Over the longer 5-year and 7-year time frame, Kotak Small Cap Fund has generated a noticeable lead of around 5.5 to 7 percentage points over the benchmark. Kotak Small Cap Fund currently ranks among the top quartile performers in the small-cap category over the 5-year and 7-year time frame.<\/p>\n\n\n\n

On risk-reward parameters, the volatility registered by the fund is lower than the category average and is much lower than the benchmark index. Kotak Small Cap Fund’s Sharpe ratio (0.54), signifying risk-adjusted returns, is among the best in the category and well ahead of the benchmark.<\/p>\n\n\n\n

Investment strategy of Kotak Small Cap Fund<\/strong><\/p>\n\n\n\n

Kotak Small Cap Fund has the mandate to invest a minimum of 65% of its assets in small-cap stocks, i.e. companies ranking 251st onwards on a market capitalisation basis. Kotak Small Cap Funds aims to build a diversified portfolio of stocks by investing across sectors. The fund prefers to invest in companies which meet the following criteria:<\/p>\n\n\n\n