The fund, which completed 19 years of operations, reported a compound annual growth rate (CAGR) of over 20% since inception under its direct plan growth option. A monthly SIP of ₹10,000, amounting to a total investment of about ₹22.8 lakh, would have delivered a return of roughly 17.87% CAGR over the same period, the data showed.
Previously known as the Kotak Emerging Equity Fund, the scheme benchmarks itself against the Nifty Midcap 150 TRI and Nifty Midcap 100 TRI. As of February 28, 2026, it has generated modest outperformance over both benchmarks, with reported alpha of nearly 2% and 3.4%, respectively. The fund manages assets worth about ₹61,694 crore and is currently overseen by fund manager Atul Bhole.
The scheme follows a bottom-up stock selection approach, focusing on business fundamentals, management quality, and valuations. It invests primarily in mid-cap companies with growth visibility, relatively low leverage, and stable cash flows, while also factoring in broader macroeconomic trends.
Recent commentary from the fund house noted that while mid-cap earnings growth has remained relatively strong compared with large- and small-cap peers, the segment has seen volatility. The mid-cap index has remained largely flat over the past year, with median corrections ranging between 13% and 15%, and broader small- and mid-cap stocks seeing drawdowns of 15%–25%.
Such corrections, the fund house said, may create selective buying opportunities.
The portfolio currently has higher exposure to sectors such as IT, chemicals, and consumer durables, while remaining underweight on metals, oil and gas, and FMCG. Exposure to financials, including banks and non-banking financial companies, has been increased in anticipation of a pickup in nominal economic growth in the second half of the year.
However, analysts caution that past performance does not guarantee future returns, particularly in mid-cap funds, which tend to be more volatile than large-cap schemes. Returns from SIPs can vary significantly depending on market cycles, entry timing, and holding period.
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