Kotak Manufacture in India Fund: Overview and Insights

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Kotak Mahindra Mutual Fund introduced a mutual fund called the Kotak Manufacture in India Fund. It aims to capitalize on the growth and development of the manufacturing sector in India by investing in a diversified portfolio of companies within this space. Here are some detailed insights and key aspects of the fund:

Fund Objectives and Strategy

The primary objective of the Kotak Manufacture in India Fund is to generate capital appreciation over the long term by investing in companies that are directly or indirectly involved in the manufacturing sector. This covers industries including capital goods, automotive, healthcare, mining, and energy.  The fund focuses on identifying and investing in companies that are poised to benefit from the growth and expansion of manufacturing activities in India.

Performance and Returns

Since its inception on February 22, 2022, the fund has demonstrated robust performance. As of the latest updates, the fund has delivered an impressive return of approximately 55.21% over the past year. The Compound Annual Growth Rate (CAGR) since inception stands at 28.89%​ 

Top Holdings and Sector Allocation

The fund’s portfolio is heavily weighted towards key manufacturing-related sectors. Some of the top holdings include:

  • Maruti Suzuki India Ltd. – 4.97%
  • Sun Pharmaceutical Industries Ltd. – 4.66%
  • Tata Steel Ltd. – 4.27%
  • Reliance Industries Ltd. – 3.68%
  • Tata Motors Ltd. – 3.52%

The fund maintains a diversified sector allocation, with significant investments in automobiles, healthcare, capital goods, and basic materials​ mysiponline

Risk and Volatility

The fund is categorized as having a “Very High” risk level, reflecting the inherent volatility associated with thematic investments. Key risk metrics include a standard deviation of 11.89 and a beta of 0.77, indicating moderate volatility compared to the broader market​ (Kotak Bank)​.

Fund Managers

The fund is managed by seasoned professionals Harsha Upadhyaya and Abhishek Bisen. Harsha Upadhyaya holds a mechanical engineering degree from NIT Surathkal, an MBA from IIM Lucknow, and is a CFA charterholder. Abhishek Bisen has a BA and an MBA in Finance and has extensive experience in fixed income products and portfolio advisory​ at mysiponline 

Investment Details

  • Fund size 1450.28 Cr.
  • Min. Investment₹ 100
  • Min. Sip Inv.₹ 100
  • Min. Addl Inv.₹ 100
  • Expense Ratio 2.05%
  • Turn over 2.14%
  • Maximum Loading Shares exceeding 10% of the investment will be charged a 1% fee.

Conclusion

The Kotak Manufacture in India Fund represents a strategic investment vehicle for those looking to capitalize on the growth of India’s manufacturing sector. With its strong performance, diversified portfolio, and experienced management, it is a compelling option for investors seeking high returns despite the high-risk profile.

For more detailed information, you can visit the official Kotak Manufacture in India Fund page, at mysiponline.

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