Fincash » Kotak Emerging Equity Scheme Vs Kotak Small Cap Fund
Table of Contents
Kotak Emerging Equities Scheme is a mid-cap scheme and Kotak Small Cap Fund belongs to the small-cap category of Equity Funds. These schemes are offered by the same fund house, that is, Kotak Mutual Fund. mid cap funds are the schemes that invest their fund money in stocks of companies having a Market capitalization ranging between INR 500 – INR 10,000 Crores. Small cap funds are a equity funds that mainly invest in start-ups. These companies are considered to have good growth potentials to grow and form part of large-cap companies. Mid-cap companies in many instances have outperformed large-cap companies. Since mid-cap companies are small in size as compared to large-cap ones they are easily adaptable to changes. So, before you invest in these scheme, let us understand the differences between these schemes.
The investment objective of Kotak Emerging Equities Scheme is to attain Capital growth in the long-term by Investing in a Portfolio of stocks primarily consisting of mid and small-cap companies. This scheme of Kotak Mutual Fund was launched on March 30, 2007, and uses S&P BSE Mid Small Cap Index to build its basket of assets. As of March 31, 2018, some of the top holdings of Kotak Emerging Equities Scheme include IndusInd Bank Limited, Finolex Cables Limited, Supreme Industries Limited, and The Ramco Cements Limited. Kotak Emerging Equity Scheme based on its Asset Allocation objective, invests around 65-100% of its corpus in stocks of mid and small-cap companies, up to 35% in stocks of other companies and up to 35% in fixed Income and money market instruments.
This scheme of Kotak Mutual Fund is suitable for individuals seeking long-term capital appreciation by predominantly investing in equity and equity-related instruments of small-cap companies. Kotak Small Cap Fund was incepted in the month of February 2005. Kotak Small Cap Fund invests in companies that are proven products and services, undervalued stock prices in comparison to their growth prospects, and have a track record of above-average Earnings along with the potential to sustain the growth. Kotak Small Cap Fund is solely managed by Mr. Pankaj Tibrewal. The risk-appetite of Kotak Small Cap Fund is moderately high. Dixon Technologies India Limited, JK Cement Limited, IndusInd Bank Limited, and RBL Bank Limited are some of the top 10 constituents of Kotak Small Cap Fund as on March 31, 2018.
Kotak Emerging Equity Scheme and Kotak Small Cap Fund both the schemes differ on account of a number of parameters. So, let us understand the differences between these schemes on the Basis of these parameters that are classified into four sections, listed as follows.
Being the first section in the comparison, it includes parameters such as current NAV, scheme category, and Fincash Rating. To begin with the scheme category, it can be said that both the schemes are part of Equity Mid & Small Cap category. On the basis of Fincash Rating, Kotak Emerging Equity Scheme is a 4-Star scheme while Kotak Small Cap Fund is a 3-Star scheme. With respect to NAV, it can be said that both the schemes differ significantly. As on May 03, 2018, the NAV of Kotak Emerging Equity Scheme was around INR 40 and of Kotak Small Cap Fund was approximately INR 81. The comparison of basics section is summarized as follows.
Parameters Basics NAV Net Assets (Cr) Launch Date Rating Category Sub Cat. Category Rank Risk Expense Ratio Sharpe Ratio Information Ratio Alpha Ratio Benchmark Exit Load Kotak Emerging Equity Scheme
Growth
Fund Details ₹130.409 ↓ -0.27 (-0.20 %) ₹52,627 on 30 Sep 24 30 Mar 07 ☆☆☆☆ Equity Mid Cap 12 Moderately High 1.52 2.86 -0.3 9.3 Not Available 0-2 Years (1%),2 Years and above(NIL) Kotak Small Cap Fund
Growth
Fund Details ₹276.704 ↑ 2.74 (1.00 %) ₹18,287 on 30 Sep 24 24 Feb 05 ☆☆☆ Equity Small Cap 23 Moderately High 1.67 2.26 -0.55 7.28 Not Available 0-1 Years (1%),1 Years and above(NIL)
This section compares the CAGR or Compounded Annual Growth Rate returns at different time intervals between both the schemes. Some of these intervals include 1 Year Return, 3 Year Return, and 5 Year Return. Based on the CAGR returns, it can be said that in many instances, the performance of Kotak Emerging Equity Scheme has been better in comparison to Kotak Small Cap Fund. The table given below summarizes the comparison of the performance section.
Parameters Performance 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year Since launch Kotak Emerging Equity Scheme
Growth
Fund Details -4.5% -1.7% 18.5% 45.5% 22.4% 27.1% 15.7% Kotak Small Cap Fund
Growth
Fund Details -4.1% -0.2% 18.8% 43.9% 19.6% 31.1% 18.4%
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The comparison of absolute returns generated by both the schemes for a particular year is done in the yearly performance section. The comparison of yearly performance section states that in many years, Kotak Small Cap Fund leads the race. The summary comparison of the yearly performance section is tabulated as follows.
Parameters Yearly Performance 2023 2022 2021 2020 2019 Kotak Emerging Equity Scheme
Growth
Fund Details 31.5% 5.1% 47.3% 21.9% 8.9% Kotak Small Cap Fund
Growth
Fund Details 34.8% -3.1% 70.9% 34.2% 5%
AUM, minimum SIP and lumpsum investment, and exit load are some of the comparable parameters that form part of this last section. The minimum SIP and lumpsum amount are same in case of both the schemes, that is, INR 1,000 and INR 5,000 respectively. However, there is a considerable difference between the AUM of both the schemes. As on March 31, 2018, the AUM of Kotak Emerging Equity Scheme was approximately INR 3,005 Crores while of Kotak Small Cap Fund was nearly INR 819 Crores. Also, the exit load for both the schemes differ. In case of Kotak Emerging Equity Scheme, the exit load is levied at 1% if the Redemption is done within two years from the date of purchase while in Kotak Small Cap Fund the exit load is levied at 1% if the redemption is within one year. The summary comparison of the other details section is as shown in the table given below.
Parameters Other Details Min SIP Investment Min Investment Fund Manager Kotak Emerging Equity Scheme
Growth
Fund Details ₹1,000 ₹5,000 Atul Bhole - 0.69 Yr. Kotak Small Cap Fund
Growth
Fund Details ₹1,000 ₹5,000 Harish Bihani - 0.95 Yr.
Kotak Emerging Equity Scheme
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 31 Oct 19 ₹10,000 31 Oct 20 ₹10,569 31 Oct 21 ₹18,090 31 Oct 22 ₹19,396 31 Oct 23 ₹22,802 31 Oct 24 ₹33,166 Kotak Small Cap Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 31 Oct 19 ₹10,000 31 Oct 20 ₹11,349 31 Oct 21 ₹22,656 31 Oct 22 ₹23,119 31 Oct 23 ₹26,953 31 Oct 24 ₹38,783
Kotak Emerging Equity Scheme
Growth
Fund Details Asset Allocation
Asset Class Value Cash 2.94% Equity 97.06% Other 0% Equity Sector Allocation
Sector Value Industrials 16.8% Basic Materials 16.53% Technology 16.02% Consumer Cyclical 15.77% Financial Services 13.38% Health Care 9.29% Real Estate 2.88% Energy 2.35% Communication Services 2.26% Consumer Defensive 1.44% Utility 0.33% Top Securities Holdings / Portfolio
Name Holding Value Quantity Persistent Systems Ltd (Technology)
Equity, Since 31 Jul 13 | PERSISTENT4% ₹2,137 Cr 3,920,512 Oracle Financial Services Software Ltd (Technology)
Equity, Since 31 May 24 | OFSS4% ₹1,870 Cr 1,632,036
↑ 3,081 Mphasis Ltd (Technology)
Equity, Since 31 Jan 24 | 5262993% ₹1,754 Cr 5,827,526 Fortis Healthcare Ltd (Healthcare)
Equity, Since 31 Mar 24 | 5328433% ₹1,521 Cr 24,724,343 Oberoi Realty Ltd (Real Estate)
Equity, Since 31 Mar 15 | OBEROIRLTY3% ₹1,516 Cr 8,010,973 Ipca Laboratories Ltd (Healthcare)
Equity, Since 31 Mar 21 | 5244943% ₹1,436 Cr 9,587,797 Supreme Industries Ltd (Industrials)
Equity, Since 28 Feb 15 | 5099303% ₹1,408 Cr 2,644,927
↓ -487,427 Solar Industries India Ltd (Basic Materials)
Equity, Since 31 Jul 11 | SOLARINDS2% ₹1,275 Cr 1,105,771 Coromandel International Ltd (Basic Materials)
Equity, Since 31 Dec 13 | 5063952% ₹1,267 Cr 7,565,556 PI Industries Ltd (Basic Materials)
Equity, Since 30 Apr 18 | PIIND2% ₹1,253 Cr 2,691,208 Kotak Small Cap Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 3.55% Equity 96.45% Equity Sector Allocation
Sector Value Industrials 33.42% Consumer Cyclical 20.77% Basic Materials 14.45% Health Care 12.7% Financial Services 3.67% Real Estate 3.63% Consumer Defensive 3.17% Communication Services 2.54% Technology 2.1% Top Securities Holdings / Portfolio
Name Holding Value Quantity Cyient Ltd (Industrials)
Equity, Since 31 Dec 19 | CYIENT3% ₹597 Cr 3,174,852 Techno Electric & Engineering Co Ltd (Industrials)
Equity, Since 31 Dec 18 | TECHNOE3% ₹570 Cr 3,559,792 Century Plyboards (India) Ltd (Basic Materials)
Equity, Since 31 Oct 18 | 5325483% ₹565 Cr 6,353,571 Blue Star Ltd (Industrials)
Equity, Since 31 May 18 | BLUESTARCO3% ₹540 Cr 2,616,673
↓ -240,679 Ratnamani Metals & Tubes Ltd (Basic Materials)
Equity, Since 31 Jan 18 | RATNAMANI3% ₹487 Cr 1,328,764 Krishna Institute of Medical Sciences Ltd (Healthcare)
Equity, Since 31 Dec 23 | 5433082% ₹451 Cr 8,096,930 Sansera Engineering Ltd (Consumer Cyclical)
Equity, Since 30 Sep 21 | 5433582% ₹434 Cr 2,596,496 Vijaya Diagnostic Centre Ltd (Healthcare)
Equity, Since 31 Mar 24 | 5433502% ₹422 Cr 4,397,621
↑ 9,120 Alembic Pharmaceuticals Ltd (Healthcare)
Equity, Since 31 Jan 22 | APLLTD2% ₹413 Cr 3,427,766 Carborundum Universal Ltd (Industrials)
Equity, Since 30 Jun 18 | CARBORUNIV2% ₹407 Cr 2,718,155
Thus, from the above pointers, it can be concluded that both Kotak Emerging Equity Scheme and Kotak Small Cap Fund differ on account of numerous pointers. As a result, individuals should be careful while choosing any of the schemes for investment. They should check whether the scheme matches the investment objective or not and understand the functioning of the scheme completely. If required, individuals can also consult an opinion of a financial advisor. This will help them to attain their objectives on time along with ensuring their investment is safe.