{"id":582,"date":"2019-07-05T11:42:55","date_gmt":"2019-07-05T11:42:55","guid":{"rendered":"http:\/\/blog.certifiedfinancialguardian.com\/?p=582"},"modified":"2019-07-09T08:02:37","modified_gmt":"2019-07-09T08:02:37","slug":"should-you-focus-on-investing-in-kotak-focused-equity-fund","status":"publish","type":"post","link":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/2019\/07\/05\/should-you-focus-on-investing-in-kotak-focused-equity-fund\/","title":{"rendered":"Should Investors Focus On Investing In \u2018Kotak Focused Equity Fund\u2019?"},"content":{"rendered":"\n

Kotak Mutual Fund launches Kotak Focused Equity Fund (KFEF), an open-ended diversified e<\/a>q<\/a>uity scheme<\/a> which will follow a focused approach of investing in equity and equity related instruments.<\/p>\n\n\n\n

As per\nSEBI regulations, a focused fund is not allowed to hold more than 30 stocks and\ninvests a minimum of 65% of its assets in equity and equity related instruments.\nKFEF will allocate its assets as per the given prescribed limits in equities\nand will also allocate some portion (up to 35% of its total assets) to debt and\nmoney market instruments from an asset allocation standpoint and to mitigate\nthe risk.<\/p>\n\n\n\n

In an endeavour\nto capture potential gains over the long term with a focused approach, KFEF\nwill diversify its equity portfolio across the market cap using a top-down\nthematic overlay. While investing in equities would entail a very high-risk.\nHence, KFEF is suitable for investors who have the stomach to bear the extremely\nhigh risk and have an investment time horizon of at least 5-7 years while\nthey seek to appreciate their capital. <\/p>\n\n\n\n

Table 1:<\/em> Details of Kotak Focused Equity Fund<\/em><\/strong><\/p>\n\n\n\n

\n Type<\/strong>\n <\/td>\n An open-ended equity scheme investing in maximum 30 stocks in large-cap, mid-cap and small-cap category. \n <\/td>\n Category<\/strong>\n <\/td>\n Diversified Equity — Focused Fund \n <\/td><\/tr>
\n Investment Objective<\/strong>\n <\/td>\n To generate long term capital appreciation\/income by investing in equity & equity related instruments across market capitalization of up to 30 companies.

\n However, there is no assurance that the objective of the scheme will be realized.\n <\/td><\/tr>
\n Min. Investment<\/strong>\n <\/td>\n Rs 5,000 and in multiples of Re 1 thereafter\n <\/td>\n Face Value<\/strong>\n <\/td>\n Rs 10 per unit\n <\/td><\/tr>
\n Plans <\/strong>\n <\/td>\n \u2022 Regular*
\n \u2022 Direct\n <\/td>		\n Options<\/strong>\n <\/td>\n \u2022 Growth*
\n \u2022 Dividend (Payout & Reinvestment*)

\n\t\n\t*Default option\n <\/td><\/tr>
\n Entry Load<\/strong>\n <\/td>\n Nil\n <\/td>\n Exit Load<\/strong>\n <\/td>If redeemed \/ switched (including SIP\/STP);\n\t
    \n
  • Within 1 year from the date of allotment of units, irrespective of the amount of investment: 1%<\/li>\n
  • On or after 1 year from the date of allotment of units, irrespective of the amount of investment: Nil<\/li>\n <\/ul>\n <\/td><\/tr>
\n Fund Manager<\/strong>\n <\/td>\n Ms Shibani Kurian, Mr Harish Krishnan and Mr Arjun Khanna\n <\/td>\n Benchmark Index<\/strong>\n <\/td>\n Nifty 200 TRI\n <\/td><\/tr>
\n Issue Opens<\/strong>\n <\/td>\n June 25, 2019\n <\/td>\n Issue Closes:<\/strong>\n <\/td>\n June 11, 2019\n <\/td><\/tr><\/tbody><\/table><\/center>\n\n\n\n

(Source: Scheme Information Document<\/a>)<\/p>\n\n\n\n

How\nwill the scheme allocate its assets?<\/strong><\/p>\n\n\n\n

Under normal circumstances, the scheme\u2019s asset allocation<\/a> will be as under:<\/p>\n\n\n\n

Table\n2: KFEF\u2019s Asset Allocation<\/em><\/strong><\/em><\/p>\n\n\n\n

\n \n \n \n \n
Instruments<\/strong><\/p><\/td>\n Indicative Allocation<\/strong><\/p><\/td>\n Risk Profile<\/strong><\/p><\/td>\n <\/tr>\n
Equity and Equity related Instruments#<\/p><\/td>\n 65 \u2013 100%<\/p><\/td>\n Medium-High<\/p><\/td>\n <\/tr>\n
Debt & Money Market Instruments*<\/p><\/td>\n 0 \u2013 35%<\/p><\/td>\n Low to Medium<\/p><\/td>\n <\/tr>\n
Units issued by REITs and InvITs<\/p><\/td>\n 0 \u2013 10%<\/p><\/td>\n Medium to High<\/p><\/td>\n <\/tr>\n<\/table><\/center>\n\n\n\n

#Subject\nto overall limit of 30 stocks across market capitalization.<\/p>\n\n\n\n

*Debt instruments shall be deemed to\ninclude securitised debts (excluding foreign securitised debt) and investment\nin securitised debts may be up to 50% of Debt and Money Market instruments.\nThis will also include margin money for derivative transactions.<\/p>\n\n\n\n

*Money Market instruments include commercial\npapers, commercial bills, treasury bills, Government securities having an\nunexpired maturity up to one year, call or notice money, certificate of\ndeposit, usance bills, and any other like instruments as specified by the\nReserve Bank of India from time to time.<\/p>\n\n\n\n

(Source: Scheme Information Document<\/a>)<\/p>\n\n\n\n

What will be the\nInvestment Strategy?<\/strong> <\/p>\n\n\n\n

To achieve the investment objective, the Kotak\nFocused Equity Fund will invest in equity and equity-linked instruments of up\nto 30 companies across market capitalization viz. Large cap, mid cap and small\ncompanies as defined under SEBI circular no. SEBI\/HO\/IM\/DF3\/CIR\/P\/2017\/114\ndated October 6, 2017, and as may be amended by SEBI from time to time. <\/p>\n\n\n\n

Currently in terms of full market\ncapitalisation, the<\/p>\n\n\n\n