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About Kotak Mutual Fund

It was the first Indian non-banking financial company to receive a banking licence from the Reserve Bank of India in February 2003. It was founded in 1985 by Mr. Uday Kotak. The organisation provides for the financial requirements of both private and institutional investors worldwide.


An open-ended equity plan that makes investments in a select group of small businesses with the potential to grow into tomorrow's large-cap firms and present you with long-term wealth development prospects.

  • By investing primarily in small businesses, Kotak Smallcap seeks to achieve its investment objective of generating capital appreciation from a diversified portfolio of equity and equity-related securities.
  • The fund primarily invests in businesses across industries with market capitalizations in the small cap range.
  • "Spot them young and watch them grow" is the key.
  • The programme is well placed to benefit from any potential growth provided by small cap stocks.

Fund Snapshot

Fund Type Small Cap Fund
Fund Managers Mr. Pankaj Tibrewal
Inception Date 24 February 2005
Benchmark NIFTY Smallcap 250 TRI (Tier 1), NIFTY Smallcap 100 TRI (Tier 2)
Minimum Investment Amount Rs. 5000 & in multiple of Rs. 1 for purchase and for Rs. 0.01 for switches
Additional Application Amount Rs. 1000 & multiples of Rs. 1
Entry Load NIL
Exit Load 1%

Equity Market Brief

  • Over the past five years, India Inc. has experienced numerous shocks, including demonetisation, major reforms like GST and RERA, a credit freeze after wholesale NBFCs were denied credit, and the current lockdown due to the supply and demand shock brought on by Coronavirus. These events like a large RESET button in the lengthy path of corporate India. a call for fundamentally altering business procedures, realigning crucial business priorities in light of changing circumstances, and significant sectoral consolidation.

  • Covid19 - It appears that the pandemic is nearing its conclusion because the majority of adults are completely immunised and the Omicron spread has infected many more. Despite the considerable economic effect during COVID19, we have observed a gradual rebound in economic activity and anticipate that trend to continue. However, even as the effects of the pandemic fade, high global commodity prices are having a negative impact on India's economy.

  • So far, the covid epidemic has strengthened corporate earnings. Since the December 2019 quarter (before Covid), the Top 1000 crores' quarterly profits have nearly quadrupled. Despite brief shocks, this tendency is likely to continue, but for the time being it provides a favourable backdrop for rising earnings. Corporate India's financial sheets have greatly improved, which creates a favourable environment for investments to increase over time. However, in the near future, high commodity prices may have an impact on many companies' profit margins; therefore, it will be necessary to evaluate businesses' long-term pricing power and capacity to withstand such raw material volatility.

  • While short-term uncertainty causes asset price volatility, in the long run, wealth creation in stocks is a consequence of how firms can persistently increase their profitability above their cost of capital. We think the longer-term prospects of Indian stocks are extremely positive given the long-range of reforms implemented as well as the probable relief measures by the government & RBI, and we would urge investors to take advantage of volatility as it emerges.

  • Time in the market is more significant than timing the market; as market volatility has increased recently, investors can profit from this volatility by concentrating on asset allocation and disciplined investing.

Portfolio Action

  • The current emphasis is on domestic companies that have a strong balance sheet and cash flow, have survived the crisis, have opportunities for growth after the pandemic to gain market share, are run by competent management teams,, and are currently trading at favourable prices.

  • The fund's positioning remains such that it overweights domestic companies with a focus on industry leaders.

  • We anticipate that market volatility will increase in the near term as a result of global rising inflation and rates, cost issues,, and uncertain impact on macrodemand.

  • We anticipate an earnings downgrade cycle in 1Q and 2Q, which could reduce the 15–17% consensus earnings growth for Nifty in FY23.

  • By September 22nd, we anticipate that concerns about higher rates and inflation will have peake,d, and attention will return to growth strategies.

  • Recent data indicate that the best of the market's breadth is behind us and that, movin,g forward, breadth would become narrower.

  • Our primary strategy is still bottom-up portfolio construction. Our focus is on businesses with strong leadership, little debt, lots of cash flow, and fair prices.

  • We have seen that several of our investee firms, as well as the overall portfolio, have had significant profits increases over the past three quarters. This rise is fueled by both market share gains from weaker competitors as well as a rebound in the underlying industry demand. Additionally, many investee firms' solid balance sheet positions continued to improve throughout the crisis as a result of the robust profits recovery and good RoCE continuing in FY22. We anticipate that this year's rising interest rates and unpredictable raw material prices will put pressure on our profits. In the short term, we continue to be wary of the markets as a whole.

  • We are adopting a very stock-specific strategy in pharma.

  • We are underweight in the financial and IT sectors and overweight in the consumer, capital, and the chemical sectors. We have decreased some weight in the consumer goods sector over the course of the month.

  • We maintained the cash levels at the same level throughout the month. (6-7%).

Top 10 Allocated Sectors

Consumer Durables


Capital Goods 16.16%
Chemicals 10.88%
Cash & Cash Equivalent 7.10%
Automobile & Auto Components 6.16%
Services 5.03%
Information Technology 4.91%
Financial Services 4.87%
Consumer Services  3.68%
Textiles  3.60%

Risk Statistics

Standard Deviation


Beta 0.88%
Sharpe 0.85%
Portfolio Turnover


Fund Manager Profile

Mr. Pankaj Tibrewal

Kotak Mahindra Mutual Fund's three funds are managed by Mr. Pankaj Tibrewal. Every plan must have a unique expenditure structure. The performance information provided here is on a regular schedule. Kotak Emerging Equity Fund (Mar 30, 2007), Kotak Equity Hybrid Fund (Nov 25, 1999), Kotak Small Cap Fund (Feb 24, 2005).

Business Experience

Mr. Pankaj graduated from St. Xavier's College in Kolkata with a degree in commerce, and he also has a master's in finance from Manchester University. Since 2003, he has worked in the mutual fund sector, managing a number of debt and equity schemes. He joined the company in January 2010 and has been a member since then. Prior employment for Mr. Pankaj was with Principal Mutual Fund.

  • Kotak Smallcap Fund - Growth, *Name of the Benchmark - NIFTY Smallcap 250 TRI, Scheme Inception date is 24/02/2005. Mr. Pankaj Tibrewal has been managing the fund since 21/01/2010.

  • Kotak Emerging Equity Fund - Growth, *Name of the Benchmark - Nifty Midcap 150 TRI, Scheme Inception date is 30/03/2007. Mr. Pankaj Tibrewal has been managing the fund since 27/05/2010.

  • Kotak Equity Hybrid Fund - Growth, *Name of the Benchmark - NIFTY 50 Hybrid Composite Debt 65:35 Index, Scheme Inception date is 25/11/1999

  • Kotak Equity Hybrid Fund - Regular plan scheme inception date is 3rd November 2014. Mr. Pankaj Tibrewal has been managing the fund since 25/08/2015. Mr. Abhishek Bisen has been managing the fund since 15/04/2008.

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