Why Choose Kotak Emerging Equity Scheme Over Other
  • A top performing mid-cap scheme
  • Investment in developing companies
  • Less volatile mid-cap fund
  • Major investment in financial sector
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Top funds 3Y Return 5Y Return
ICICI Prudential MidCap Fund - Growth 29.73% 9.81% Invest
DSP Midcap Fund - Regular Plan - Growth 18.88% 8.29% Invest
Kotak Emerging Equity Scheme - Growth 30.12% 13.66% Invest
Sundaram Mid Cap Fund Regular Plan - Growth 23.67% 7.33% Invest
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Aug 29, 2018 9 min read

Fund Review: Kotak Emerging Equity Scheme

Read this blog to know what Kotak Emerging Equity Fund is and why you should add it to your portfolio.

In the present time, when the correction phase is going on, it is observed that large-cap equities are doing much better than the mid-cap and small-cap equities. But, the experts believe that with time the latter two will also yield remarkable returns. Let’s find out what our experts suggest in this context.

Who Should Invest in Kotak Emerging Equity Scheme?

  1. Investors willing to add an equity scheme to their portfolio may select this scheme as it mainly invests in the developing companies and provides a growth scope.
  2. Those who are looking for an opportunity to park their money for a long-term may consider investing in this Kotak MF.
  3. This scheme is for aggressive investors as the risk involved is moderately high on the principal amount invested.

Facts About Kotak Emerging Equity Scheme - Growth Plan

Category Mid Cap
Benchmark Nifty Midcap 100 TRI
Launch Date 3/30/2007
Asset Size Rs 3,327 crore (As on Jul 31, 2018)
Fund Managers Pankaj Tibrewal
Expense Ratio 2.34% (As on Jul 31, 2018)
Minimum Lumpsum Rs 5,000
Minimum SIP Rs 1,000
Exit Load 1% for redemption within 365 days

Kotak Emerging Equity Fund : Performance

Return AnalysisTrailing Returns3 - Year Rolling Returns with a gap of 6 months
ParticularsSince LaunchLast 5 YearsLast 3 YearsDec 2013 to Dec 2016Jun 2014 to Jun 2017Dec 2014 to Dec 2017May 2015 to May 2018
Benchmark: S&P BSE MidCap - 27.50% 17.28% 23.36% -11.12% 21.18% 14.74%
Kotak Emerging Equity Scheme 12.92% 32.19% 15.54% 4.40% 25.82% 20.59% 16.08%
As on August 27, 2018
  • This scheme has managed to generate 12.92% annual average returns since inception.
  • Though the three-year returns of 15.54% yielded by this fund is less than the benchmark returns, however, it has managed to do well with time.
  • The five-year return of the scheme is 32.19% and that generated by the benchmark is 27.50%. This clearly shows that it has managed to beat the benchmark in long-run and is performing well.
  • For the period of June 2014 to June 2017 and May 2015 to May 2018, this scheme has outperformed its benchmark with good margins.

Risk Analysis of Kotak Emerging Equity Scheme (G)

ParticularsSDBetaSharpeMax DrawdownUpsideDownside
Benchmark: S&P BSE MidCap 16.46 - 0.65 -14.55% 100 100
Category 16.62 0.95 0.48 -18.41% 89 98
Kotak Emerging Equity Scheme 15.69 0.92 0.63 -17.22% 93 92
As on July 31, 2018
  • The standard deviation of the scheme is less than both its benchmark and category. Even Beta of the scheme is 0.92% which is less than its category’s Beta by 0.03%. Both these factors prove that the returns yielded by this scheme are less likely to fluctuate, comparatively.
  • The Sharpe ratio of this scheme is 0.63% which is again more than its category’s ratio which proves that comparatively it is going to provide better returns with the per unit risk taken.
  • The maximum drawdown of the scheme is -17.22% which is although less than its category, still, much more than its benchmark’s drawdown which is -14.55%.

Portfolio Allocation of Kotak Emerging Equity Scheme- Growth

kotak emerging equity scheme

  • This scheme as per its category has invested majorly in the mid-cap equities with the percentage of the total assets allocated in it being 68%.
  • It has also invested in others such as large-cap, small-cap, giant-cap, and micro-cap. However, the individual investment percentage is not more than 20% of the total assets.
Basic Material (Agriculture, Chemical, Metal & Mining, Steel, Building Materials) 17.30%
Consumer Cyclical (Auto related industries, Travel & Leisure, Marketing Cos, Apparel & Furniture Mfg Cos) 19.19%
Financial Services 23.17%
Real Estate 1.33%
Communication Services 0.00%
Energy 0.00%
Industrial 14.35%
Technology 7.36%
Consumer Defensive 6.27%
Healthcare 8.34%
Utilities 2.70%
As on July 31, 2018
  • This scheme has invested more than 60% of the assets in the companies belonging to cyclical sector, around 22% in sensitive sector, and approximately 18% in the defensive sector.
  • This scheme has majorly invested in the financial sector with about 23.17% of its assets followed by consumer cyclical. It has not inclined any of its assets towards energy or communication services.
Stock NameWeightage (%)Absolute ReturnsValuation
1 Year5 YearP/BVPE
Bharat Financial Inclusion Ltd. 4.02 35.95% 967.93% 5.47 26.4
RBL Bank Ltd. 3.59 25.23% - 3.88 39
Schaeffler India Ltd. 3.29 27.89% 371.48% 5.03 35.41
Ramco Cements Ltd. 3.2 1.75% 393.73% 3.91 31.04
Atul Ltd. 2.94 55.71% 981.71% 4.06 28.91
Supreme Industries Ltd. 2.91 5.4% 275.85% 7.59 31.39
Finolex Cables Ltd. 2.73 7.3% 991.61% 3.8 25.05
Solar Industries India Ltd. 2.71 38.3% - 9.47 46.54
Shriram City Union Finance Ltd. 2.6 7.71% 124% 2.3 19.02
Thermax Ltd. 2.57 16.58% 84.72% 4.4 50.56
Emami Ltd. 2.44 3.37% 175.12% 12.23 75.84
APL Apollo Tubes Ltd. 2.23 12.21% 1098.55% 4.34 22.84
Return: As on July 31st, 2018
  • This fund has invested around 37% of its assets in the top twelve companies which prove that it has chosen to invest in a diversified manner.
  • P/E and P/BV ratios appear to be high which states that the stocks of the companies are sold at a price higher than their book values.
  • The table shows that mostly all the companies in which the investment has been made have yielded outstanding five-year returns.

SIP and Lumpsum Investment in Kotak Emerging Equity Scheme

3-Years SIP Returns
 Cumulative InvestmentGrowth ValueAbsolute ReturnsXIRR
Kotak Emerging Equity Scheme(G) 36000 46812 30.03% 17.79%
3-Years Lumpsum Returns
 Investment 3-Years agoGrowth ValueAbsolute ReturnsCAGR
Kotak Emerging Equity Scheme(G) 100000 150903 50.90% 14.67%
Returns: As on March 31, 2018
  • If an investor makes a SIP investment with a monthly SIP of Rs. 1000 for three years such that the total investment amount is Rs. 36,000, then the maturity amount will be Rs. 46,812.
  • In case the investment is made through lumpsum mode with Rs. 1,00,000, then the maturity amount generated will be Rs. 1,50,903 with the return rate being 50.90%.


Investors are suggested to invest in Kotak Emerging Equity Scheme as it is likely to perform well in the coming time now. Those who prefer taking high risk to earn high returns may invest in this scheme by Kotak Mahindra Mutual Fund in the current time. You may invest in it through our platform MySIPonline and may consult the financial experts in case of any confusion.

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Peer Comparison

FundLaunch1-Year Return3-Year Return5-Year ReturnExpense Ratio (%)Assets (Cr.)
Kotak Emerging Equity Scheme (G) 7-Mar 10.11 15.52 32.17 2.34 3,327
ICICI Prudential Mid Cap Fund (G) 4-Oct 8.49 11.91 29.98 2.41 1,535
L&T Midcap Fund (G) 4-Aug 8.25 17.81 32 2.39 3,066
DSP BlackRock Midcap Fund (G) 6-Nov 10.14 15.46 30.08 2.19 5,676
Sundaram Mid Cap Fund (G) 2-Jul 6.56 13.76 29.24 2.12 6,138

To read about the best mid cap schemes mentioned above, click on this link  5 Best Mid Cap Funds to Invest in 2018 

 You may also go through the expert reviews on one of the top mid-cap funds, via Fund Review: ICICI Prudential Mid Cap Fund

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