Fund of Fortnight

This is our mutual fund recommendation. Every fortnight , we recommend one open-ended equity diversified fund that has the best potential of returns for the next one year considering its constituents remain the same. 

Kotak Balanced Advantage Fund - Direct Plan (Growth)

Reason for recommendation-



A great divergence is emerging between the returns offered by the equity and debt funds. While equity funds are generating negative returns, some of the long duration and gild funds are generating double-digit returns in last one year. This creates confusion among many investors about which asset class is better. It is not possible for an investor to precisely predict which asset class is going to perform when. Hence, opting for a fund that invests in both of these asset classes makes a perfect sense now. Hybrid funds are the category of funds that invests in both equity and debt. Kotak Balanced Advantage Fund is one such fund that invests in both the categories. At the end of June 2019, the fund's holding was almost equal between debt, equity and cash. The debt and cash part of the fund is being managed dynamically based on the views of the fund manager. Holding one-third of the corpus in equity has helped fund to beat the category returns and its benchmark in last one month. The fund has even managed to outperform its category and benchmark in all the time frame. Beside proper asset allocation what has also helped the fund is its equity exposure that gives the fund gains even in tough times. Presence of companies such as Reliance Industries, HDFC Bank, Infosys and ICICI Bank gives strength to the equity portion of the fund. The fund’s debt holding contains all the A-rated securities issue from government or quasi-government organisations, baring a few. Hence this fund is suitable to a conservative investor who wants his capital to be protected and at the same time wishes for decent growth in his investment.