SIP Performance – Kotak Small-Cap Fund – Direct Plan.

Kotak Small-cap fund is one of the highly-rated equity funds within the category and has outperformed its benchmark since inception and on 1, 3, 5-year period.

Systematic Investment Plan (SIP) through this option, an investor can invest a sum of money of at least Rs 500 periodically, monthly or quarterly. Such plans are generally suitable for small and moderate-income level individuals as it allows to invest with small amounts. This encourages youngsters i.e., individuals who start their journey of earnings to invest right from a young age. This enables the creation of a large corpus if investors invest for a longer time.

Mutual funds offer various types of schemes such as equity-oriented, debt-oriented, hybrid and other schemes. These schemes are further divided into various categories. Kotak Small-Cap Fund is an open-ended small-cap fund.

Let’s look at the SIP performance of Kotak Small-Cap Fund which invests majority of its corpus in 251st company onwards in terms of full market capitalization. This fund is outperforming its benchmark in 1, 3, 5-year periods and since inception it is outperforming the benchmark i.e. NIFTY Small cap 100 TRI. It is the highest-rated fund within its category. If you had invested just Rs 1,000 every month i.e. Rs 12,000 p.a. from October 1, 2018, till the present date i.e. October 7, 2021, then your worth of investment would have been ₹77,846 as against the amount invested of ₹37,000.

Now the question arises, what rate of return the above investment delivers? Let’s look at the same:

As you can see, in the above calculation if you had invested Rs 1,000 every month for three years you would have received a 46.00% return.

Following table depicts the performance of the fund over its benchmark as of October 6, 2021:

Let’s look at the top 5 holdings of Kotak Small-Cap Fund – Direct Plan: