Tuesday, March 6, 2018

Kotak Select Focus Fund


In rising markets when certainty of earnings' growth is a long-term development, it is advisable to be invested with schemes which have high focus on large-sized companies. Given the distinct advantages large-sized companies possess, the possibility of these companies showing better earnings growth than mid-sized companies is quite high. One mutual fund scheme which has high focus on large-sized companies and has climbed up the list of best-performing funds is Kotak Select Focus.

Harsha Upadhyaya, who has been managing the Kotak Select Focus Fund for the past five years, follows top-down approach and selects companies following growth style of investing. A few key parameters he keeps in mind are competitive edge in their respective sectors, scalability and established and proven business model. This strategy has paid off. In the past three-year and five-year periods, the scheme has generated 15.4 and 21.4% returns, while its benchmark index Nifty 200 has given 9 and 14.3% returns in the same period.


At present, over 80% of the Kotak Select Focus Fund portfolio is dedicated to largesized companies and remaining is divided between mid- and small-sized companies. In the past six months, the scheme invested in well-managed and established large-sized companies across themes, which represent the theme of recovery of economic growth. These are State Bank of India, HDFC Bank, Bharat Electronics, ITC, Petronet LNG, and Larsen & Toubro.



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