Kotak Mutual Fund launches Kotak Focused Equity Fund

Kotak Asset Management Company (AMC) has launched the Kotak Focused Equity Fund. The new scheme will be an open-ended scheme and will invest in a focused portfolio of up to 30 stocks across large-cap, mid-cap and small-cap categories. The new fund offering (NFO) opens for subscription on June 25 and closes on July 9.

The fund will be benchmarked against Nifty 200 TRI. Kotak Focused Equity Fund will be co-managed by Shibani Kurian and Harish Krishnan.

“Kotak Focused Equity Fund integrates corporate governance with risk/reward-based selections. The fund will follow a thematic approach of bottom up stock picking using the Business, Management and Valuation (BMV) model,” said Shibani Kurian, senior vice president and head of equity research, Kotak Mutual Fund. “We will evaluate the business environment that a company operates in, the capability of the management to execute and scale up the business and valuation of the company based on fundamentals like discounted cash flows and P/E ratios,” she added.

According to a press release by the fund house, the scheme will have a concentrated portfolio consisting of 25-30 high growth and good quality businesses with sustainable and scalable earnings potential over the long term. The fund house also said that the new scheme is suitable for long term investors looking to benefit from the structural growth opportunity in Indian equities.

The scheme will follow a multi cap portfolio strategy to ensure stocks pick without market cap bias. The press release also said that the new scheme will follow a bottom up approach to stock picking with a top down thematic overlay.

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