Home / Mutual Funds / News /  Monthly SIP of 10,000 in this equity mutual fund scheme takes investment value to nearly 46 lakh

It isn't a myth that mutual funds through Systematic Investment Plan (SIP) is seen as a long-term wealth creation mechanism. This has proven true in Kotak Mutual fund-backed diversified equity fund. Kotak's Flexicap fund has given impressive long-term returns. This equity mutual fund has given triple-digit returns in percentage terms on a monthly SIP of 10,000. In a span of 13 years, the total investment value of 15.90 lakh has risen to nearly 46 lakh in this MF scheme.

Kotak Flexicap Fund is said as the largest open-ended equity fund in India. Launched in September 2009, this MF scheme has seen major crises such as Eurozone Crisis, Quantitative Tightening, Demonetisation, and Covid, etc., and managed to withstand and outperform during these crises.

Furthermore, the fund's performance is strong on a long-term basis. The fund carefully identifies the better-performing sectors across market capitalization ranges and then invests your money in the most promising ones. Thus, powering your portfolio to help you achieve your investment goals.

Data given by Kotak Mutual Fund revealed that a lumpsum investment of 1 lakh in Kotak Flexicap Fund during its birth in 2009 has turned investment value to 5.6 lakh as of now.

But the scheme also shows why choosing SIPs peg much better returns than any other medium. A monthly SIP of 10,000 from inception in Kotak FlexiCap Fund has taken the investment value of investors to 45.84 lakh to date. The CAGR is 13.9% in a lumpsum investment of 1 lakh, while the CAGR is 14.8% in a monthly SIP of 10,000.

SIPs are systematic investment plans offered by mutual funds where one could invest a fixed amount in various mutual fund schemes on a daily, weekly, monthly, or yearly basis. SIPs are a convenient and disciplined manner of investment.

Further, as per the data, in case if an investor had begun 10,000 SIP every month from September 2009 --- the total investment comes to around 15.90 lakh as of November 2022. This total investment value has risen to 45,84,655 as of November 30, 2022 --- resulting in a gain of 188.34% on the capital pumped in. On the other hand, the data also showed that if a SIP of 10,000 every month was done for a period of 1 year, then the investment value would be around 1.20 lakh --- and its total corpus would be 1,30,508 -- which is an upside of nearly 8.8%.

Since inception, the fund has given returns of 14.84%. Harsha Upadhyaya has been managing the fund since August 2012.

Kotak Flexicap Fund is said as the largest open-ended equity fund in India.
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Kotak Flexicap Fund is said as the largest open-ended equity fund in India. (Kotak Mutual Fund report )

The current portfolio strategy of the fund is:

- Insulating portfolio from global macro headwinds and volatility resulting from valuation risk.

- Preference to domestic businesses vis-à-vis global linked/export-focused businesses.

- Focus on companies that may benefit from moderating commodity cost inflation.

- Focus on beneficiaries of operating leverage.

- Large-cap allocation of about 72%. Will look to increase Midcap allocation at better valuations.


Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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