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Decent Record

Looking to grow big by focusing on large cap, the kotak-30 seems to be on the right path. Not one to raise eyebrows, the fund has been a steady performer and the same can be expected in the future

No one has ever accused Kotak 30 of being the most exciting offering out there. But this four-star rated fund has managed to build a steady long-term record of decent returns. The year 2004 was the best in its performance history and the only one when it landed in the top quartile. Its returns of 37 per cent placed it ninth in the category of 81 funds. In the subsequent two years, it beat the category average by a comfortable margin.

The name could be a misnomer though. It is not an index fund benchmarked against the Sensex. Its simply reflective of a portfolio restricted to 30 stocks (any stocks). Often the assets are well spread, but at times the fund manager does take concentrated bets. Of late, the fund's overweight position in the technology sector has been brought down from over 25 per cent to 15 per cent. Currently, the fund is betting big on the energy sector which accounts for 19.46 per cent of the assets.

The fund essentially has a growth focus with a strong large-cap bias. The mid- and small-cap exposure varies from negligible to none.

Not an aggressive churner, stocks like Larsen & Toubro, Reliance Industries and Deccan Chronicle have been there for a considerable length of time.
Others like BHEL, ONGC and State Bank of India have been in the portfolio intermittently, but with reasonable continuity.
Though a fund manager switch took place in January this year, Krishna Sanghvi has not strayed from the strategy of investing in a small, focused portfolio of large-cap stocks.