Middle of the Road Performer

This was one of the early AMCs that had a financial service group as its sponsor. The Kotak brand name, trust and reach automatically came to the fund house. However, this AMC has frittered away the advantage. It has a full range of products across debt and equity categories, yet there is nothing to write about the fund schemes in glowing terms because all this does not reflect in its performance. More or less, the AMC lived off its early year tilt towards being a good debt fund player.

The early year innovation of launching Kotak Mahindra K Gilt Unit Scheme 98, the first ever gilt fund in the country, is no more seen with the product suit of this AMC. Though the fund house got its act in order to launch equity funds in 2004, the aggression resulted in several launches and even good performance. The bull run during this phase aided the fund house with its funds doing well in a rising market. However, since 2008, this AMC has remained mediocre. Some of its above-average funds have taken the middle of road path and look adrift. The performance of its equity funds requires a big boost to regain investor interest.

This article was originally published on December 13, 2012.