Kotak Standard Multicap equity mutual fund renamed as Kotak Flexicap Fund1 min read . Updated: 17 Feb 2021, 03:40 PM IST
- Flexicap mutual funds have the flexibility to move across market capitalisation ranges
Kotak Mahindra AMC today announced the renaming of Kotak Standard Multicap Fund to Kotak Flexicap Fund. This comes in line with market regulator Sebi's categorisation mandate where multicap funds had to invest at least 25% of their corpus in large, mid and small cap stocks each.
Flexicap funds, however, have to have a minimum of 65% of their assets in equity and equity-related investments with no cap on how much should be invested in large, mid, or small caps. These funds have the flexibility to move across market capitalisation ranges.
“The underlying investment process, portfolio composition and expectations of risk/return remain the same, thus assuring investors of continuity of our investment philosophy and approach. Now, renaming the fund as Kotak Flexicap Fund, gives an additional flexibility for us to choose between various market capitalisation buckets," said Harsha Upadhyaya, President & CIO – Equity, Kotak Mahindra Asset Management Company, who also manages this fund.
“Investment in the equities market is a long term game of patience to experience the compounding potential of equities. Investors are advised to stagger their investment through SIP/STP to tide over any short term volatility", he added.
Kotak Flexicap Fund will continue to follow the top-down sectoral approach supplemented by bottom-up stock picks, the fund house said, adding that the fund will also continue to take concentrated sector allocation diversified at a stock level.
The current portfolio has a large-cap allocation is approximately three-fourth of the total corpus (as on 29th January 2021).