We are going to review the Kotak Small Cap Fund Direct Growth for long term , and whether you should invest in it for upcoming years . We will share everything based on its past performance, history, and fundamental analysis of the Kotak small cap fund direct growth review long term 2025 to 2030 .
What is Kotak small cap fund direct growth ?
Kotak Small Cap Fund is a mutual fund scheme designed to invest in stocks of small companies. Small-cap firms are typically characterized by a market capitalization below Rs 5,000 crore. These companies often exhibit significant growth potential but also carry notable risks due to their susceptibility to macroeconomic changes.
Examples of small-cap firms include Nesco, Thyrocare, and Delta Corp.
While certain small-cap stocks may offer the potential for substantial returns, it’s crucial to acknowledge that investing in small-cap stocks entails heightened risks. These companies are more exposed to economic downturns and market fluctuations. Therefore, this fund is best suited for investors who possess a higher risk tolerance. Overall, Kotak Small Cap Fund presents an opportunity for investors seeking potentially lucrative returns, but it is essential to be aware of the associated elevated risks inherent in the small-cap sector.
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Kotak small cap fund direct growth comparison
| Period | This Fund | Category Avg |
|---|---|---|
| 1 year | 21.23% | 27.53% |
| 3 years | 40.36% | 39.58% |
| 5 years | 23.56% | 21.58% |
| 7 years | 19.78% | 19.22% |
| 10 years | 26.13% | 24.83% |
| 15 years | — | 19.63% |
| Since Inception | 20.99% | 17.23% |
1 year: This Fund generated a return of 21.23%, while the average return in its category was 27.53%.
3 years: Over the past 3 years, This Fund delivered a return of 40.36%, outperforming the category average of 39.58%.
5 years: The 5-year return for This Fund was 23.56%, which was slightly better than the category average of 21.58%.
7 years: Over a 7-year period, This Fund had a return of 19.78%, slightly higher than the category average of 19.22%.
10 years: For the past 10 years, This Fund generated a return of 26.13%, surpassing the category average of 24.83%.
15 years: Unfortunately, data for the 15-year period is not available for This Fund, while the category average return over 15 years is 19.63%.
Since Inception: Since the inception of the fund, it has delivered an annualized return of 20.99%, which is higher than the category average of 17.23%.
In summary, This Fund has shown competitive performance in various time frames when compared to the average performance of mutual funds in its category, indicating its potential as an investment option. However, please note that past performance is not indicative of future results, and other factors should also be considered when making investment decisions.
Kotak small cap fund direct growth Pros and Cons
Certainly, here’s the information presented in a table format:
| Pros | Cons |
|---|---|
| – 5Y returns in the top 25% of the category | – No identified drawbacks |
| – 3Y returns in the top 25% of the category | – it is good to diversify your portfolio |
| – Beats FD returns for both 3Y & 5Y |
Kotak small cap fund direct growth review
Key Parameters:
Kotak Small Cap Fund – Direct Plan – Growth manages assets worth ₹11,597 Crores as of July 2023, exceeding the category average. The fund maintains a competitive expense ratio of 0.4%.
Returns:
Kotak Small Cap Fund – Direct Plan – Growth has demonstrated strong returns. Since its inception, it has achieved a commendable CAGR return of 21.00%. Notably, over the past 1, 3, and 5 years, the fund has consistently delivered robust CAGR returns of 21.14%, 39.94%, and 23.49%, respectively.
Holdings:
The fund has strategically allocated its assets across various sectors, including Cash Equivalent, Industrial, Consumer Cyclical, Basic Materials, Financial Services, Health, Consumer Defensive, Tech, Real Estate, and Energy. Among its top holdings are Carborundum Universal Ltd, Cyient Ltd, Ratnamani Metals & Tubes Ltd, Century Plyboards (India) Ltd Shs Dematerialised, and Galaxy Surfactants Ltd.
Taxation:
Given its small-cap focus, Kotak Small Cap Fund is subject to specific taxation rules:
- Short-term capital gains (held for less than a year) are taxed at 15%.
- Long-term capital gains (held for more than 1 year) are taxed at 10%, without the benefit of indexation.
- Dividends are taxed at the applicable slab rate. Notably, long-term gains up to Rs 1 lakh are exempt from taxation.
Investment Objective:
The primary objective of Kotak Small Cap Fund – Direct Plan – Growth is to generate capital appreciation. It aims to achieve this by investing predominantly in small-cap companies through a diversified portfolio of equity and equity-related securities. However, it’s important to note that there is no guarantee that the scheme will meet its investment objectives.
Minimum Investment and Lock-in Period:
For investors, the fund offers a low entry point with a minimum lump sum investment of INR 100.00 and the same amount for SIP investments. Additionally, Kotak Small Cap Fund – Direct Plan – Growth has no lock-in period, offering flexibility to investors.
Please note that all investment decisions should be made after carefully considering your financial goals and risk tolerance, and consulting with a financial advisor if necessary.
Read also – Best 5 small small cap fund
FAQs about Kotak Small Cap Fund Direct Growth review long term 2025 to 2030
1. How much returns have Kotak Small Cap Fund – Direct Growth generated?
- The Kotak Small Cap Fund – Direct Growth has delivered a return of 21% since its inception.
2. What is the expense ratio of Kotak Small Cap Fund – Direct Growth?
- The expense ratio of Kotak Small Cap Fund – Direct Growth is 0.45% as of 08 September 2023.
3. What is the AUM of Kotak Small Cap Fund – Direct Growth?
- The AUM (Assets Under Management) of Kotak Small Cap Fund – Direct Growth is ₹2,83,896 Crores as of 08 September 2023.
4. What are the top stock holdings of Kotak Small Cap Fund – Direct Growth?
- The top stock holdings of Kotak Small Cap Fund – Direct Growth are:
- Carborundum Uni. – 3.79%
- Cyient – 3.49%
- Ratnamani Metals – 3.29%
- Century Plyboard – 3.22%
- Galaxy Surfact. – 2.59%
5. Is there any lock-in period for Kotak Small Cap Fund – Direct Growth?
- No, there is no lock-in period for Kotak Small Cap Fund – Direct Growth. Investors have the flexibility to enter and exit the fund as per their preferences.
6. What are the top sectors Kotak Small Cap Fund – Direct Growth has invested in?
- The top sectors Kotak Small Cap Fund – Direct Growth has invested in are:
- Consumer Durables – 19.75%
- Industrial Products – 12.96%
- Auto Components – 10.51%
- Chemicals & Petrochemical – 7.19%
- Debt – 5.59%
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