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Shanthi Venkataraman

INVESTORS can retain their units in Kotak Global India. Since its inception in January 2004, the fund has turned in an impressive performance. Investors contemplating fresh exposures may choose funds with a longer track records, such as HDFC Top 200 or Franklin Bluechip.

Suitability: The fund chooses to invest in stocks of companies that have an orientation towards international markets. The investment options may, therefore, be limited to a smaller basket of stocks.

The fund tends to take concentrated exposures to sectors. A number of mid-cap stocks dominate its portfolio. As such, the fund carries a higher risk profile vis-à-vis a typical diversified equity fund. Unitholders can stay with the fund so long as it does not form a core part of their portfolio and exposures to it are limited.

Performance: Kotak Global has generated a return of about 40 per cent over the past year, which places it among the top 25 equity funds. The fund was launched when the market was at a high and was almost immediately a witness to a rapid correction in the market.

But the fund handled the correction well, containing declines to a level much lower than that of the Sensex, its benchmark. Sticking to IT, pharmaceutical and engineering stocks appears to have helped it deliver better returns over the year.

Portfolio overview: The fund has pruned exposures to the pharmaceutical sector over the past couple of months, although it still remains one of the top holdings.

Its focus being on stocks of companies that can compete at the global level, pharmaceutical, engineering and IT stocks account for nearly 60 per cent of the holdings.

While the fund does sport a couple of large-cap stocks, it is the early entry into stocks in the mid-cap space, such as Bharat Forge, Sesa Goa, Thermax and Raymond, that has helped it deliver attractive returns.

Fund facts: Kotak Global is an open-ended equity fund launched in January 2004. It has an asset base of Rs 236 crore. It offers dividend and growth options. The minimum investment amount is Rs 5,000. The manager is Mr. Rushabh Sheth.

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