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When you have excess capital which you want to invest in for a short duration, then low duration mutual fund plans are the best. There are many funds in the category, and one is Kotak Low Duration Fund, which is favourite of investors because of its consistent better returns in industry. The financial experts of MySIPonline have researched about the fund to let the investors know its in-depth details, which have been provided below:
About the Fund:
Kotak Low Duration Fund-Standard Plan was launched in the year 2008. It is a low duration category debt fund which invests in the low duration debt and money market securities, which have the maturity period of three months or more. The fund is an open-ended scheme which has an AUM of Rs 5,053 Cr as on Jun 30, 2018, with an expense ratio of 1.00% as on May 31, 2018. It has currently 89 securities in its portfolio of different credit rating, which mainly include AA, AAA, A and Below, A1+, cash equivalent, etc.
The top holdings of the fund are in Uttar Pradesh Power Corporation, Bank of Baroda, SD Corporation, Manappuram Finance, and Shriram Industrial Holdings.
Past Performance Analysis:
The fund has been following Nifty Low Duration Index as its benchmark. It has provided the returns of 7.72% since its launch. The alpha generated by the fund is 4.56% as provided by the financial experts of MySIPonline on June 30, 2018, as per the past three years returns.
The trailing returns of Kotak Low Duration Fund for the past three, five and seven years was 7.98%, 8.57%, and 8.59%, which has beaten its benchmark and category both all these years.
The annualised returns of the fund for the recent past years were 9.48% in 2014, 9.29% in 2015, 8.93% in 2016, and 7.14% in 2017, respectively. All these years, the fund has outperformed its index and peers both, to provide consistently high returns.
Fund Manager:
Kotak Low Duration Fund Growth has been managed by Mr Deepak Agrawal since 2015. He has started his career in Kotak Mahindra AMC in 2002, where he researches and deal funds. He then moved to fund management and currently working as vice president of debt funds at the fund house.
He is a Chartered Accountant and Company Secretary by profession. He picks those funds who have average credit quality as well as interest rate. This helps him to generate the regular returns in the fund keeping the principal amount at moderate risk.
Investors’ Suitability:
Kotak Low Duration Fund G is suitable for the investors who have extra capital, which they want to invest in the debt funds for a short period of three months or more. The fund offers the moderate risk to investors, whose portfolio maturity duration lies between 6 months to 12 months.
The NAV of Kotak Low Duration Fund G is Rs 2161.2894 as on July 17, 2018. The fund offers an average risk and above average returns to its investors. So, if you are looking for an investment or any more information, connect with our experts at MySIPonline.