A mid-cap fund called Kotak Emerging stock Fund (KEEF) makes investments in the stock and instruments linked to equity of mid-sized Indian businesses. For investors hoping to create long-term wealth appreciation, it is a solid investment. The fund has a strong track record, surpassing the Nifty Midcap 100 Index, its benchmark index, most of the time. The following are a few advantages of purchasing kotak emerging equity fund:
- Possibility of large profits:
Mid-cap firms tend to develop at a quicker pace than large-cap firms, and investing in their equities may provide better profits. Over the majority of time periods, Kotak Emerging Equity Fund has beaten its benchmark index, proving its capacity to provide alpha for investors.
For instance, the Nifty Midcap 100 Index, the benchmark index for the Kotak Emerging Equity Fund, has produced an average annual return of 19.25% over the last five years, compared to an average annual return of 21.73% for the fund. This indicates that during the last five years, Kotak Emerging Equity Fund has beaten its benchmark index by 2.48% annually.
- Diversification
Generally speaking, mid-cap firms are less well-known and have less liquid shares than large-cap firms. This may increase their volatility, but it also implies that investors may profit from more diversification. A mid-cap fund such as Kotak Emerging Equity Fund may assist investors in lowering the total risk of their portfolio.
An investor is more vulnerable to the danger of a decline in the large-cap market, for instance, if their whole portfolio is made up of large-cap equities. However, an investor may diversify their risk and lessen the total exposure of their portfolio to the large-cap market by allocating a part of it to a mid-cap fund, such as Kotak Emerging Equity Fund.
- Expert Supervision:
Investment experts with a wealth of expertise oversee the Kotak Emerging Equity Fund. Pankaj Tibrewal, the fund manager, has more than 15 years of expertise in the financial sector. He has successfully managed mid-cap funds in the past.
- Low Ratio of Expenses:
Because of the low cost ratio of kotak small cap fund, investors retain a larger portion of their profits. For the normal plan, the fund’s cost ratio is 1.5%; for the direct plan, it is 1.75%.
- Adaptability:
With the Kotak Emerging Equity Fund, investors have the option of making lump sum or systematic (SIP) investments. A SIP may be started by investors with as low as ₹100 a month.
Who Has to Purchase Kotak Emerging Equity Fund Shares?
The Kotak Emerging Equity Fund is a viable choice for those who:
Invest for a minimum of five years in the long term.
Are trying to produce large profits.
Are at ease with a modest level of danger.
Want to add variety to their holdings.
The Kotak Emerging Equity Fund: How Do I Invest?
The following avenues are available for investors to purchase Kotak Emerging Equity Funds through:
- Internet:
Through the Kotak Mutual Fund website or a number of other online investing platforms, investors may make online investments in the fund.
- Outside:
By going to a Kotak Mutual Fund distributor or a Kotak Mahindra Bank office, investors may make offline investments in the fund.
Conclusion
For investors hoping to gain long-term capital growth from a portfolio of mid-cap equities with 5Paisa, the Kotak Emerging Equity Fund is an excellent choice. With most time periods, the fund has outperformed its benchmark index, demonstrating a strong track record. The fund has a low cost ratio and is managed by a skilled group of financial experts.
