Is Kotak Standard Multicap Fund good for a long investment horizon?

I have started investing in Kotak Standard Multicap fund with a time horizon of 10-12 years. Have I chosen a good fund? Also, I have recently stopped my investments in Axis Long Term Equity Fund. When will I be able to redeem it?
- Nirmal

Kotak Standard Multicap Fund is a good fund. However, you must not sit satisfied after choosing any fund with such a long-time investment horizon. As of today, this fund is a good fund but only the point of worry is something called the winner's curse in the case of mutual funds. The more successful a fund, the more it attracts the interest of investors and as a result, a lot of investors put money in it. But the returns start falling, as with the growth of the fund's size, it may no longer be able to deliver the same strategies on a larger base.

This kind of situation may arise in the case of this fund, as many investors like you have been investing in it. Having said that, as of now, it is a good fund and you must continue investing in it. However, do not settle for 10-12 years and make sure to review the fund within every two years.

For the tax-saving fund, as soon each of your units completes a period of three years, you can redeem your investments.

This article was originally published on November 28, 2019.