Investing In Kotak Multicap Fund: A Comprehensive Guide

Kotak Multicap Fund is an open-ended equity scheme that invests across large-cap, mid-cap, and small-cap stocks. The fund's objective is to generate long-term capital appreciation from a portfolio of equity and equity-related securities across market capitalizations. It is suitable for investors who are looking to invest money for at least 3-4 years and are seeking high returns while being prepared for the possibility of moderate losses. The fund has a majority of its investments in the Financial, Services, Automobile, Energy, and Technology sectors. It has a minimum SIP investment of ₹100 and an expense ratio of 0.38%.

How to invest in Kotak Multicap Fund online

Investing in the Kotak Multicap Fund online is a straightforward process. Here is a step-by-step guide on how to do it:

Step 1: Understanding the Fund

Before investing, it is essential to understand the nature of the fund. The Kotak Multicap Fund is a multi-cap fund that seeks to generate long-term capital appreciation. It invests in a portfolio of equity and equity-related securities across different market capitalizations, including large-cap, mid-cap, and small-cap stocks. This fund is suitable for investors who are willing to invest for at least 3-4 years and are comfortable with the possibility of moderate losses.

Step 2: Evaluating Risk and Returns

The Kotak Multicap Fund carries a high risk, as indicated by the SEBI Riskometer. It is mandated to invest at least 25% of its assets in large, mid, and small-cap stocks, making it a volatile investment option. The fund has delivered average annual returns of around 28% since its inception. When investing in this fund, be prepared for potential ups and downs in your investment value.

Step 3: Choosing the Investment Platform

You can invest in the Kotak Multicap Fund directly through the website of the fund house, Kotak Mahindra Mutual Fund. Alternatively, you can use online platforms like MF Central or MF Utility. These platforms provide a convenient way to invest in mutual funds.

Step 4: Registration and Payment

When investing through the fund house's website, you will need to register and provide necessary details, including your bank account information. After registering, you can choose between a one-time investment or starting a Systematic Investment Plan (SIP). Enter the amount you wish to invest and proceed with the payment.

Step 5: Monitoring Your Investment

After investing, remember to monitor your investment periodically. Keep track of the fund's performance, and ensure it aligns with your financial goals and risk appetite. You can usually check the Net Asset Value (NAV) of the fund daily, and the fund house will provide updates on its performance.

Step 6: Redemption

If you decide to redeem your investment, you can do so through the fund house's website or the platform you used to invest. Keep in mind that there may be exit loads and tax implications, depending on the holding period and the type of fund. For the Kotak Multicap Fund, a 1% exit load is charged for redemption within one year for units in excess of 10% of the investment.

How to invest in Kotak Multicap Fund via a distributor

Investing in the Kotak Multicap Fund via a distributor is a straightforward process. Here is a step-by-step guide on how to do it:

Step 1: Understand the Fund

Before investing, it is essential to understand the nature of the Kotak Multicap Fund. This fund seeks to generate long-term capital appreciation by investing in a portfolio of equity and equity-related securities across different market capitalizations. The fund is mandated to invest at least 25% of its assets in large, mid, and small-cap stocks, making it a relatively volatile option. It is suitable for investors who are comfortable with higher risk and are willing to invest for the long term.

Step 2: Find a Distributor

If you decide to invest in the Kotak Multicap Fund via a distributor, you can reach out to a mutual fund distributor or your bank, as most banks also act as mutual fund distributors. They will guide you through the investment process and provide you with the necessary support.

Step 3: Provide Necessary Information

When you approach a distributor, they will require some essential information from you, such as your email address, investment type (lump sum or SIP), and the amount you wish to invest. They may also ask for details such as your bank account information.

Step 4: Complete the Investment Process

With the guidance of your chosen distributor, you will complete the investment process. This typically involves filling out the necessary forms and making the payment. Remember that there is no additional fee for purchasing through a distributor, but regular funds have a higher expense ratio than direct funds due to the commission paid to the distributor.

Step 5: Monitor Your Investment

After investing in the Kotak Multicap Fund, remember to periodically review your investment's performance. You can track the fund's Net Asset Value (NAV) and returns to make informed decisions. Remember that mutual funds, especially multi-cap funds, can be volatile, so be prepared for potential ups and downs in the value of your investment.

What is the minimum investment for Kotak Multicap Fund?

The minimum investment amount for the Kotak Multicap Fund varies depending on the type of investment plan chosen. For the Direct Plan, the minimum initial investment is Rs. 5,000, with a minimum additional investment of Rs. 1,000. The Regular Plan has the same minimum additional investment amount of Rs. 1,000, but a lower minimum initial investment of Rs. 100. Both plans require investments to be made in multiples of Rs. 1.

The Kotak Multicap Fund is an open-ended equity scheme that invests across large-cap, mid-cap, and small-cap stocks. It aims to generate long-term capital appreciation from a portfolio of equity and equity-related securities across market capitalizations. However, there is no assurance that the objective of the scheme will be realized.

What is the expense ratio of Kotak Multicap Fund?

The expense ratio of the Kotak Multicap Fund is 1.65%, as of 1 October 2024. This is the annual fee charged by the fund to manage your money. It is deducted from the Net Asset Value (NAV) on a daily basis.

The expense ratio of the direct plan of the Kotak Multicap Fund is 0.38%. This is lower than what most other Multi Cap funds charge.

The NAV of the Kotak Multicap Fund for 1 October 2024 is 21.06.

The Kotak Multicap Fund has been in existence for 3 years, having been launched on 8 September 2021. It has delivered average annual returns of 28.09% since its inception. The fund has approximately ₹14,541 Crores worth of assets under management (AUM) as of 30 June 2024.

The fund has 96.74% investment in domestic equities, of which 35.05% is in Large Cap stocks, 22.69% is in Mid Cap stocks, and 19.39% is in Small Cap stocks.

What are the returns of Kotak Multicap Fund?

The Kotak Standard Multicap Fund is a moderately high-risk fund that has delivered a CAGR return of 15.1% since its launch in September 2009. The fund's returns for 2023 were 24.2%, 5% for 2022, and 25.4% for 2021.

The Kotak Multicap Fund, launched in September 2021, has delivered average annual returns of 28.09% since its inception. The fund has doubled the money invested in it every 2 years. The fund's returns for the last 1 year are 54.83%.

The Kotak Multicap Fund - Regular Plan (G) does not have any specific information on returns. However, it mentions that lower expense ratios lead to higher returns for investors.

Frequently asked questions