Kotak Focused Equity Fund

Get the edge of Select Focus

An open-ended equity scheme that invests in
a concentrated portfolio of up to 30 stocks across market capitalization
Kotak Focused Equity Fund
An open-ended equity scheme that invests in a concentrated portfolio of up to 30 stocks across
market capitalization

Stock Selection: High Quality Companies At Reasonable Valuations

Stage 1
Number of listed & traded
stocks in India: ~3000

Stage 2
Number of stocks with market Common
cap of > �1400 cr: 653 Process
for Kotak
Stage 3 Equity Funds
Number of stocks under research
coverage: 327 (85% of India’s M-cap)

Stage 4
45-70 diversified ideas

Stage 5 Kotak
Distilling gold from ore Focused
Equity
Top stock ideas: ~25-30 Fund

Distilling Gold From Ore – The Process

Sustainable Business Capital Efficiency Good Corporate Governance

Seeking business with Seeking businesses Diligent protection
strong moats & with where ROCE (Return on Capital of minority shareholder
long term viability Employed) > Cost of Capital interest

Managerial Capability Growth At Reasonable Long Term Investment Fit

Business Vision/Ambition Valuation (GARP) Prefer long term compounding
and its execution Seeking reasonable values for ideas rather than short term
are in sync businesses based on growth tactical or event based trades
expectation and inherent value
Risk Management In A Concentrated Strategy
Optimum Weights Cash Allocation
Optimum management of stock weights Generally no cash call will be taken. Fund will
in the portfolio based on: endeavour to maintain up to 7.5% of the portfolio for
Risk Reward Ratio liquidity needs and portfolio modifications*
Liquidity

Liquidity Optimize Impact Cost

Manage liquidity to minimise impact cost of Select use of derivatives for optimizing impact cost
portfolio turnover as well as fund flows and overcoming entry/exit limitations, if any

Disclaimer: *The above provided limit is based upon the fund manager discretion and assessment of the necessary conditions to pursue the
investment objective. These limits may change based on FM’s constant appraisal of the market and business conditions and due to the
evolving internal and regulatory investment framework

The Key Is To Minimise Risk Of Loss And Maximise Your Winners. But How?
Begin Well Idea Validity Downside Awareness
Rigorous selection The CIO Equity will act as Risk/Reward based selection to limit downside
process to identify a sounding Board for the
potential winners Fund Manager Hypothetical Example Stock A Stock B

Constant Review Fund Capacity Expected Upside Potential 20% 20%

Regular monitoring & Fund will stop accepting flows
attribution analysis If Fund Manager believes it has Expected Downside Risk -10% -8%
reached optimum size Our
preference

Salient Features Of Kotak Focused Equity Fund

Concentrated Portfolio Leveraging On Research Capabilities

25-30 high growth and good quality Stock picking through the BMV
businesses with sustainable and model: ‘Business, Management
scalable earnings potential and Valuation’
over the long term

Suitable For Long Term Investors Multi-Cap Portfolio Strategy

Those looking to benefit from the Ensuring stocks pick without
structural growth opportunity market cap bias
in Indian equities

Bottom Up Approach To Stock Picking

With a top down thematic overlay.
 FUND FACTS

Type
An open ended equity scheme investing in maximum 30 stocks in large-cap,
mid-cap and small-cap category.

Benchmark: Nifty 200 TRI

NFO Opens On: June 25, 2019

NFO Closes On: July 9, 2019

Name of Fund Manager: Ms. Shibani Kurian & Mr. Harish Krishnan

Load Structure:

Entry Load: Nil

Exit Load: 1% if redeemed/switched out within 1 year from the date of allotment
and thereafter nil

The information contained in this (document) is extracted from different public sources. All reasonable care has been taken to
ensure that the information contained herein is not misleading or untrue at the time of publication. This is for the information of the
person to whom it is provided without any liability whatsoever on the part of Kotak Mahindra Asset Management Co Ltd or any
associated companies or any employee. Investors should consult their financial advisors if in doubt about whether the product is
suitable for them before investing.

These materials are not intended for distribution to or use by any person in any jurisdiction where such distribution would be
contrary to local law or regulation. The distribution of this document in certain jurisdictions may be restricted or totally prohibited
and accordingly, persons who come into possession of this document are required to inform themselves about, and to observe,
any such restrictions.

www.kotakmf.com | Toll-free number # 1800 222 626 |

Riskometer Kotak Focused Equity Fund

An open ended equity scheme investing in
maximum 30 stocks in large-cap, mid-cap and
small-cap category.

This product is suitable for investors who are seeking:*

1. Long term capital growth
2. Investment in equity & equity related securities across
Low High market capitalisation in maximum 30 stocks
Investors understand that their principal *Investors should consult their financial advisor if in doubt
will be at moderately high risk about whether the product is suitable for them

MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.