Why should you invest in Kotak Equity Savings fund?

Equity markets are above 21000 level. It’s an exciting time to be in the market. But this excitement can be too much for investors to handle. That’s why - Kotak Equity Savings Fund. A product meant for investors who want to reap the benefits of the Indian Equity market but also are a little more conservative in terms of their investing philosophy.

This fund invests in Equity as the name suggests. But to balance out the risks, it also allocates money to Debt and arbitrage with an aim to neutralize market volatility.

As on the 30th of Nov the fund had 65% plus gross exposure in equities, the scheme invests in among sectors like Banks, financial services and pharma. What’s more, the scheme invests in large cap stock with some exposure to mid and small basis the fund manager discretion.

As we know historically, Equities are among the asset classes out there which provide potential returns higher than other asset classes, help to tackle inflation and reap the benefit of power of compounding. However, they are riskier and also volatile.

And that’s where the fund manager uses other asset classes - like debt and arbitrage.

With the debt portion, the fund strives to generate regular income. The fund manager also uses the derivatives market to scout for and tap any arbitrage opportunities - to earn and to neutralize the direct exposure to Equity asset classes.

And finally, thanks to the 65% plus gross exposure in equities, investors get a tax advantage as well!

If we have to place the Kotak Equity Savings Fund in a risk return graph. The fund will aim to provide better returns compared to debt schemes, less volatile compared to equity schemes.

Dislcaimer

Mutual fund investments are subject to market risks, read all scheme related documents carefully.