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This Debt Hybrid Fund From Kotak Is Ranked 1 By CRISIL; Good To Start SIP
Mutual funds are becoming a hot destination for investors. Mutual funds assist investors in diversifying unsystematic risks by investing in a diverse portfolio of companies from various industries. As a result, mutual fund risk is substantially smaller than that of individual equities. Here, we have given detailed insights including returns of the Kotak Debt Hybrid Fund.
Kotak Debt Hybrid Fund- Direct-Growth
| NAV | Fund Size | Expense Ratio |
|---|---|---|
| ₹47.40 | ₹ 1267.99 Cr | 0.48% |
NAV as on 03 February 2022
Launched on January 1, 2013, the fund is a Conservative Hybrid mutual fund from the Kotak Mahindra Mutual Fund AMC. Fund's AUM was Rs 1,268 crores as of December 31, 2021. It has a cost ratio of 0.48%, which is lower than the expense ratios charged by most other Conservative Hybrid funds. CRISIL has given this fund a 5-star rating, and it performs quite well in comparison to its contemporaries. However, it comes under the moderately high risky fund.
The fund has a 24.77% stake in Indian stocks. The fund has a debt investment of 62.52%, with 50.34% in government securities and 12.18% in funds investing in extremely low-risk securities. The fund has delivered 11.09% average annual returns. The fund's ability to provide consistent returns outperforms that of the majority of funds in its category. It has an above-average capacity to control losses in a sinking market. The Scheme seeks to increase returns by investing in debt securities while maintaining a reasonable exposure to equities and equity-related assets. The Scheme aspires to achieve consistent returns by investing in debt securities and to increase returns by investing in equity and equity-related assets.
The equity element of the fund is predominantly invested in the Financial, FMCG, Construction, Services, and Energy sectors. In comparison to other funds in the category, it has acquired less exposure in the financial and FMCG industries. The debt element of the fund has a reasonable credit quality, meaning that the borrowers to whom it has lent are of good quality.
Top five holdings of the fund:
- Government of India
- THDC India Ltd.,
- ICICI Bank Ltd.,
- Embassy Office Parks REIT
- Maharashtra State
Absolute and Annualized Returns
On investment of Rs 10,000
| Period Invested for | Absolute Returns | Annualised Returns | Category Avg |
|---|---|---|---|
| 1 Year | 13.29% | 13.29% | 26.17% |
| 2 Year | 32.38% | 15.03% | 10.62% |
| 3 Year | 49.22% | 14.23% | 9.63% |
| 5 Year | 62.60% | 10.21% | 7.81% |
| Since Inception | 158.07% | 11.09% | 9.21% |
SIP Returns
Returns on SIP Rs 1,000
| Period Invested for | Absolute Returns | Annualised Returns |
|---|---|---|
| 1 Year | 6.19% | 11.57% |
| 2 Year | 17.19% | 15.99% |
| 3 Year | 24.97% | 14.97% |
| 5 Year | 36.80% | 12.46% |
Should You Invest?
Conservative hybrid funds invest around a quarter of your money in stocks and the balance in bonds. These funds are good for investors who cannot tolerate excessive volatility in the value of their assets and are satisfied with modest returns that are somewhat greater than returns from fixed-income choices. They may also be suitable for people seeking a monthly income from their savings. Invest only if you have a three-year or longer investment horizon. This fund is good to generate predictable income with some inflation protection.
Disclaimer
Mutual fund investments are subject to market risk. Read all scheme-related documents, Terms and Conditions carefully before investing. The above-mentioned information is purely informational and carried forward from CRISIL and MoneyControl. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.
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