| Brokerage firm Kotak Securities is launching a portfolio management scheme (PMS) focusing on small cap companies having a market cap of less than Rs 2,500 crore, a first PMS dedicated to smaller stocks by any brokerage in the country.
|
| |
| Unlike some of the other existing portfolio schemes, this scheme christened 'Kotak Origin' will have a long maturity period of 30 months or upto December 2009.
|
| |
| "We are ready to play the waiting game. We are looking at growth-oriented investing with a large upside in mind," said Shashank Khade, senior vice-president and fund manager of the scheme.
|
| |
| There are about 500 companies with a market cap between Rs 100 crore and Rs 500 crore, 750 companies in the Rs 500 crore-Rs 1,000 crore market cap and another 200 companies in the market cap of Rs 1,000 crore and Rs 2,500 crore. Kotak would be investing in 20 to 25 companies out of the 950 companies that would qualify for the scheme, according to Khade.
|
| |
| According to B Gopkumar, vice-president and head of Kotak's Financial Planning Group, Kotak Securities is confident of mobilising Rs 180 crore through its latest portfolio management scheme.
|
| |
| Though the minimum amount is set at Rs 10 lakh an investor, he said the Origin scheme was receiving enquiries for investments worth Rs 25-30 lakh.
|
| |
| Kotak Origin is the second portfolio management scheme of Kotak Securities in the last couple of months. It recently raised Rs 150 crore for a scheme aimed at large-cap investing. The scheme, which is looking to invest in a small set of 18 large-cap stocks, is targeted at investors who are risk-averse in nature.
|
| |
| Khade said Kotak's 'Origin' will stay away from those companies which are continuously looking at raising funds through share issuances.
|
| |
| "The investments would be in diverse sectors, so that we could de-risk ourselves from possible sector-specific downturns," he said.
|
| |
| Sectors such as financial services, information technology, retail, entertainment, fashion and BPOs could be some of the sectors where the Origin scheme would look to invest.
|
| |
| On the low liquidity of small-caps, which would come into play at the time of exit in 2009-end, Khade said the fund managers were looking at stocks that are under-owned at this point of time.
|
| |
| The stocks which are currently under-owned by foreign and domestic institutions are likely to attract interest in the next couple of years. "It is all about getting your cycle right. We do not forsee any problem in liquidity in these stocks by December 2009," he said. |
| |
Content Guide
