Fund of Fortnight

MF Select- 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. 

Reason for recommendation  

Kotak Bluechip Fund - Direct Plan (Growth)



Kotak Bluechip Fund, which was earlier known as Kotak 50, is a large-cap focused fund. Even before its name change, the fund was large-cap focused. At the end of July 2019, the fund held more than 80 per cent of its corpus in large-cap dedicated stocks and around 10 per cent in mid-cap stocks. In the current market situation, when the market is volatile large-cap dedicated funds are the best place to hide. In last one year, they have remained one of the best categories in term of performance among equity-dedicated funds. Although they too have fallen, but have fallen least. Going ahead, we see this category and fund to outperform their indices. The fund invests in the businesses that are likely to grow at a faster pace than the benchmark index. To select such companies, fund manager first identifies the growth sectors and then zeros in on the leader of such sector. The current portfolio clearly shows this. The fund's largest holding is in banks and financials where it holds 40 per cent of its corpus. Among, financials it holds HDFC Bank and ICICI Bank having weightage of 9.52 and 7.9 per cent, respectively. Next sector where the fund is overweight is IT. In IT sector, the fund holds TCS and Infosys which are industry leaders.



In turbulent times like this, large-cap stocks, who are market leader of their respective industry, have better operating levers to navigate through such situation.