This Large & Mid-Cap Mutual Fund SIP Is 4 Star Rated By Morningstar, Suited For Good Returns

The Large & Mid-Cap Mutual Fund SIPs are well suited for investors, who are keen for security on the investment.

Large & Mid-Cap Mutual Fund SIP investment rationale

The Large & Mid-Cap Mutual Fund SIPs will choose company stocks among the top 250 stocks based on their market capitalization, listed in the equity markets. The large-cap stocks will offer your better security, and the mid-cap stocks will offer security with better return potential. However, the large-cap stocks are well-established and developed companies, so they have better chances to grow in the long term, rather than short term. The mid-cap stocks can give you better returns in the short term.

The fund house will diversify your money among different company stocks in different sectors, to obtain profitable returns.

Kotak Equity Opportunities Fund

Kotak Equity Opportunities Fund is a popular SIP investment with a NAV of Rs. 191.51. the fund size (AUM) is Rs. 8939.73 crore. The Expense Ratio (ER) is 1.88%; which is lower than the category average at 2.15%. The Expense Ratio (ER) is the percentage, the fund house will use your money for its official management expenses, so a lower ER can increase your profitability. Additionally, AUM is the total market value of the fund's investments, that the fund house is managing for the investors.

This mutual fund SIP has been rated with 4 Star by renowned rating agency Morningstar, which has the potential of good returns.

Absolute and annualized returns

Kotak Equity Opportunities Fund's SIP's absolute returns are certainly attractive in the long term. In the last 1-year SIP return stood at 6.40%, in the last 2 years it has fetched 32.33% returns, in the last 3 years it has given a 41.67% returns, and in the last 5 years, it has fetched 53.97% returns. Annualized returns of this fund's SIP were 29.39% in the past 2 years, and 23.90% in the past 3 years.

Kotak Equity Opportunities Fund's absolute mutual fund returns are highest in 5 years terms. In the last 1 year return stood at 17.18%, in the last 2 years it has fetched 44.68% returns, in the last 3 years it has given 76.45% returns, and in the last 5 years, it has given 97.12% returns. In addition to that, in the past 3 years, the Kotak Equity Opportunities Fund's annualized returns stood at 20.82%.

Portfolio

Kotak Equity Opportunities Fund's total equity holding is 96%, and the rest of the 4% is invested in other sectors. Among the total 60 stocks, the Fund's Large Cap Investments are 48.39%, Mid Cap Investments are 32.25%, Small Cap Investments are 9.87%; and 5.49% investments are allocated in other funds.

This fund's portfolio turnover ratio is 13.01%. The top 10 equity holdings of the Kotak Equity Opportunities Fund are ICICI Bank, State Bank Of India, Infosys Ltd., Larsen & Toubro Ltd., SRF Ltd., Axis Bank Ltd., Bajaj Finance Ltd., Tata Consultancy Services Ltd., Reliance Industries Ltd., HDFC Bank Ltd.

Other funds under this category are, Quant Large and Mid Cap Fund, BOI AXA Large & Mid Cap Equity Fund - Regular Plan, SBI Large & Midcap Fund - Regular Plan, etc.

(Also read: Best Rated Focused Equity Mutual Fund SIP, Marked Upto 144% Returns: Crisil)

Disclaimer

Investing in equities/mutual funds/SIPs poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, and the author are not liable for any losses caused as a result of decisions based on the article. (Data mentioned as on February 18, 2022)