Kotak Small Cap Fund

Fund in Brief

The Kotak Small Cap Fund has adopted a growth-oriented investment style. Under this, the fund invests assets in many different market caps. It is done so that the fund performs well in every situation, even when a particular market cap is not doing well. 

Investments are made in large, medium, and small-cap companies with majority in small-cap stocks that have higher growth potential.

The gains from these investments are taxable under the IT Act. If the investor redeems their units within 12 months, the gains would be taxed at 15%. If units are redeemed after 12 months, gains up to Rs. 1 lac are tax-free. If gains exceed Rs. 1 lac, they are taxed at 10%. 

The investor's dividend income is added to their overall income and tax is levied as per their tax slabs. If the dividend income is more than Rs. 5,000 in a financial year, 10% TDS is deducted by the fund house.

Kotak Small Cap Fund Facts

The following table shows some important facts about the Kotak Small Cap Fund:

Investment Objective

The Kotak Small Cap Fund is an open-ended equity scheme that invests in small companies with greater growth potential. The fund's investment objective is to generate capital through portfolio diversification by investing in equity and equity-related instruments. The investments are majorly done in the small market cap companies across different sectors. 

The fund has a 95.11% investment in Indian stocks. Out of the total, the fund has invested 2% in large-cap stocks, 11.79% in mid-cap stocks, and 70.9% in small-cap stocks. The fund performs on the benchmark of the NIFTY Smallcap 100 Total Return Index. 

Fund Summary

The Kotak Small Cap Fund has two types of plans for investors to choose from. Given below are the basic details about the plans.

1. Kotak Small Cap Fund Regular Plan

   This plan is suitable for those investors who purchase units through a distributor. The basic details of this plan are as follows:

   • NAV (as of November 29th, 2021): Rs 161.494

   • Expense Ratio: 1.96%

   • CAGR since inception: 18.04%

2. Kotak Small Cap Fund Direct Plan

   This plan is meant for investors buying the units directly from the fund. The basic details of the plan are as follows:

   • NAV (as of November 29th, 2021): Rs.181.067

   • Expense Ratio: 0.47%

   • CAGR since inception: 22.11%

Fund Return Summary

The following table shows the fund return summary of the Kotak Small Cap Fund for the Regular Plan:

*Returns are subject to change. The investment risk in the investment portfolio is borne by the policyholder.

The following table shows the fund return summary of the Kotak Small Cap Fund for the Direct Plan:

*Returns are subject to change. The investment risk in the investment portfolio is borne by the policyholder.

Pros and Cons

The following table shows the pros and cons of the Kotak Small Cap Fund:

Who should invest in the Kotak Small Cap Fund?

The Kotak Small Cap Fund is suitable for:

• Investors who are willing to invest money for at least 3-4 years.

• Investors who have a high-risk appetite due to the high volatility of the fund.

• Investors who want consistently high returns over a long period.

• Investors who are experienced in small-cap investments.

FAQ's