Kotak Emerging Equity Fund Scheme

Kotak Emerging Equity Fund is a mutual fund that invests in emerging markets.

The Kotak Emerging Equity Fund's investment goal is to develop long-term capital gains from a stock of equity and equity-related assets, focusing on midcap corporations. These businesses are either in the early stages of growth or are still being explored. Mid-cap corporations, however competitive in the brief period, can produce greater long-term profits.

  • The Kotak Emerging Equity Scheme is a mutual fund that invests in emerging markets.
  • The Kotak Emerging Equity Scheme is a mid-cap equity fund with a 14-year average return of 13.4 per cent.
  • The fund was formally registered as Kotak Emerging Equity.
  • Kotak Mahindra Asset Management Co Ltd handles the fund's administration.
  • The fund manager's name is Pankaj Tibrewal.
  • The Kotak Emerging Equity Scheme fund was announced on March 30, 2007.
  • The NAV (Net Asset Value) of this mid-cap equity is 57.887 as of April 1, 2021.
  • The fund's total AUM (Asset Under Management) as of 2021-04-02 is 10431.195.
  • The Kotak Emerging Equity Scheme fund is categorized as a quite Significant Risk.
  • The fund's interest expense is 1.82 per cent.

Kotak Emerging Equity Scheme SIP

The minimum SIP (Systematic Investment Plan) number is Rs 1000, and you can raise it in 100 increments.

If you want to make a one-time contribution, then the minimum cost is Rs 5,000.

Kotak Emerging Equity Scheme Investment volatility and Horizon

  • This fund has been designed for investors with a 5-7-year investment period.
  • Expect short-term fluctuations in your assets due to the asset class's existence.
  • IISL NIFTY Midcap 100 TR INR is the fund's benchmark.

Review of the Kotak Emerging Equity Scheme

  • Kotak Emerging Equity Scheme (G) earns a four on a scale of 1 to 5.
  • The investment earns a 5 out of 5 rankings based on previous performance.
  • Compared to several other schemes in its category, Kotak Emerging Equity Scheme (G) seems to have a score of 5 out of 5.

Investment Objectives of the Kotak Emerging Equity Scheme

  • The plan's investment goal is to generate long-term capital growth by investing in a portfolio of equities securities, emphasizing mid-cap corporations.
  • The policy can also invest in debt and money market instruments, as per the asset allocation chart.
  • No guarantee would reach the investment target of the program. 
  • Conversely, there is no guarantee.

Equity Market Update

  • Over the last three years, India Inc has been hit by a slew of surprises, ranging from demonetization to crucial transformations like GST and RERA to credit freezes in the wake of retail NBFCs to obtain credit. To the present lockdown resulting from the worldwide production and consumption shocks ignited by Coronavirus.
  • These events appear to be a significant RESET button in the arduous trip of corporate India. In a shifting environment and major restructuring across industries, there is a call to change business strategies and reconfigure key business goals drastically.
  • We are gradually transitioning from economic lockdown to phases of 'unlocking.' Demand patterns are potentially promising, but they must maintain them.
  • Thus far, corporate earnings have progressed significantly, with most corporations' cost-cutting steps managing to shore up profits, even though many corporations continue to struggle.
  • They have encroached on the unorganized sector's market share. The continuation of this pattern would have to be determined, but for now, it provides a positive context for rising earnings.
  • Interest rates have declined for India Inc., and commercial India's balance sheets have massively improved, creating a favorable environment for investments to develop over time.
  • Although short-term instability triggers asset price fluctuations, long-term wealth development in equity funds is dictated by how companies can efficiently expand beyond their asset value. We consider the longer-term opportunities of Indian equities are very promising, given the long-range of measures imposed and probable relief measures by the government and RBI. Still, we would suggest buyers profit from uncertainty as to its manifestations. Even though the Covid-induced shutdown would significantly affect earnings in FY21, we predict profitability to improve consecutively and rise over the next several years.
  • Time in the market is more critical than market timing. Currently, market volatility has bumped up, and buyers will profit from this uncertainty by concentrating prudent investment and capital structure.

The factor of danger

  • The Kotak Emerging Equity Fund's portfolio will primarily consist of equities assets, posing a Medium to High risk due to the price instability and uncertainty. The capacity of mid-and small businesses to resist changes in their business loop is restricted, leading to increased share price volatility.

  • Mid- and smaller businesses may lack managerial depth, still raise funds for expansion or advancement, or create or sell new goods and services. The marketplace is not well developed and will never become so. They can also face disadvantages such as suboptimal technology, a shortage of negotiating power with vendors, low entry hurdles, insufficient accountability, corporate responsibility, and a lack of tolerance to business/economic cycle shocks.
  • The focus and industry risk are low because this is not an industry scheme and plans to invest throughout industries.
  • Since the valuation of mid-and small-cap companies' stocks is smaller than that of big corporations' stocks. The liquidity risk is projected to be more significant. The portfolio of stocks volatility and liquidity risk are reduced by the diversifying and versatility to participate up to 35% in other corporations (large companies).
  • Could make Few contributions in equity-based securities like Futures and Options, so in that case, the risks involved with these kinds of derivatives will also apply.
  • The policy can invest in domestically chain processes, such as asset-backed securities or mortgage-backed securities, from period to period. Credit risk (where credit losses in the aggregate pool outweigh credit enhancement provided) and reinvestment risk are common risks associated with securitized debt investments (higher than the regular corporate or sovereign debt). Account’s receivable resulting from car loans, personal loans, loans towards consumer durables, loans secured by mortgages of residential buildings, and such are the underlying assets in the chain process.

Dividend Policy

Growth Choice for

There'll be no income distribution under the Investment options, and buyers will only receive returns in the form of earned income, if any, through repayment at the appropriate NAV of Units owned by themselves.

Securityholders would have the option to receive their dividends in the form of dividend warrants or other forms that could be enchased or through direct credit towards their accounts.

Dividend Reinvestment Option: It will reinvest Dividend sums in the Dividend Reinvestment Option at the Applicable NAV, which is declared immediately afterwards the start date under that same reinvestment alternative.

Frequently Asked Questions:

1. What is the Investment Objective of Kotak Emerging Equity Schemes?

Ans: The plan's investment goal is to generate long-term capital growth by investing in a portfolio of equities securities, emphasizing mid-cap corporations.

2. Is There is any guarantee that would reach the investment target of the program?

Ans: No, there is not any guarantee that would reach the investment target of the program.

3. Is there is any risk in investing in the Kotak Emerging Equality Scheme?

Ans: Yes, The Kotak Emerging Equity Scheme fund has categorized as a quite Significant Risk.