SIPs in the past few years have drawn investors' attention mainly due to their capacity to meet long-term goals of individuals through disciplined and regular investing. And Kotak Mutual fund established in the year 1985 by Uday Kotak is one such AMC company that offers a gamut of SIP options to choose from and investors depending on their investment objective as well as risk profile can opt for the best scheme on offer. So here are suggested a few good Sip options for you to consider:
1. Kotak Classic Equity Regular Plan: The equity large cap fund features a total assets under management of Rs. 334 crore as on April 30, 2018. The fund's benchmark is Nifty 100.
Investors need to put in a minimum of Rs. 1000 per month for this SIP whereas the initial investment amount in the scheme is Rs. 5000. The NAV of the scheme is Rs. 49.84 under the growth plan and Rs. 20.318 under the dividend plan.
The 1-year return from the fund has been phenomenal at 18.38% while 3 and 5-year returns have been 12.47% and 15.54% respectively.
Top holdings of the fund include stocks like HDFC Bank, L&T, HUL, RIL and Maruti Suzuki amongst others.
2. Kotak Select Focus Fund Regular- Growth: It is one of the top performing funds from the leading fund house. The fund has total assets under management of Rs 19,228 crore (As on Apr 30, 2018). The large cap equity fund in the last one year provided 7.42% returns while its 3 and 5 year returns stand at 13.63% and 19.86% respectively. Crisil has placed this fund in the first spot in the the large-cap category of funds.
The last NAV of the scheme under the growth plan is Rs. 32.916 while for the dividend plan it is Rs. 23.47
Notably the funds portfolio includes HDFC Bank, RIL, L&T, HDFC, ICICI Bank and Infosys amongst others.
The fund tracks the benchmark Nifty 200 index. Investors can start SIP in the fund for as less as Rs. 1000 whereas the minimum investment to get started with the SIP is of course. Rs. 5000. Minimum 6 cheques are required for the SIP.
Within the category, its peer Invesco India Largecap Fund leads in terms of one-year performance with a return of 12.84%
3. Kotak Emerging Equity Scheme Regular Plan: The open ended equity growth scheme has a total AUM of Rs. 3,286 crore (As on Apr 30, 2018). The investment objective of the scheme is to generate long-term capital appreciation from a portfolio of equity and equity related securities. The funds' benchmark is S&P BSE Mid Small cap index.
The one-year return from the fund has been 9.51% while in the last 3 and 5 years, the fund scheme offered 16.24% and 25.82% returns respectively. This is decent considering the portfolio of the fund that predominantly includes mid and small cap companies. NAV of the fund under the growth plan as on May 17, 2018 is Rs. 40.18.
Individuals can begin an SIP in the fund with minimum Rs. 1000 per month. The initial investment of course is Rs 5,000.
Funds stock portfolio comprises Indusind bank, Atul, Ramco Cements, RBL Bank, Bata Industries and Supreme industries amongst others.
4. Kotak Monthly Income Plan Regular Plan: It is an open-ended income fund and the monthly income is not assured and depends on the availability of distributable surplus. The investment objective of the scheme is to enhance returns over a portfolio of debt instruments with a moderate exposure in equity and equity related instruments.
The fund from Kotak has a total AUM of Rs. 372 crore as on April 30, 2018. The last NAV of the fund is Rs. 29.46 under the growth plan. The fund has generated a return of 3.56 per cent in the last one year, whereas the three year returns has been 8.49 per cent.
Top debt holdings of the fund include 8.5% GOI 2022 central govt. loan, Reliance Jio Infocomm 90-D 30/05/2018 commercial paper, 10.9% Punjab & Sind Bank 2099 and 10.9% Punjab & Sind Bank 2099 amongst others. Top equity holding of the fund includes ITC, Tata Motors, Sun TV, Mahindra and Mahindra, Bata India and RBL Bank amongst others.
You can invest in the scheme with a small SIP of Rs 1000 with an initial SIP of Rs 5,000. The minimum number of cheques needed for the SIP is 6.
5. Kotak Equity Savings Fund - Regular Plan: The hybrid equity-oriented fund has a total AUM of Rs. 1,996 crore (As on Apr 30, 2018). NAV of the fund under the growth plan as on May 17, 2018 is Rs. 13.45.
The fund has generated a return of 8.61% in the last one year while it fetched 8.12% in the past three years.
The fund tracks the benchmark NIFTY 50 Arbitrage (75), NIFTY 50 (25) and carried a moderately high risk.
Top equity holdings of the fund include stocks such as GMR Infra, Jindal Steel and Power, Capital First, TCS etc. While the funds top debt holding comprise HDFC Bank, Axis bank term deposits, 8.75% Axis Bank bonds etc.
The minimum investment to get started with the SIP is Rs. 5000 and monthly SIP amount can be as low as Rs. 1000.
It is to be noted that after the introduction of LTCG tax on equity mutual fund scheme from the start of the FY 2018-19, there has been huge redemption in these schemes but the inflow is now fast making up for the previous redemption. Also, investors will be better-off by putting bet on dividend plans as these do not arise any tax implications in the hands of the investor.