Kotak Multicap Fund doubles investor wealth in 4 years; AUM crosses ₹20K cr

The fund follows a dynamic fund investing across large, mid, and small caps, allocating 25-50% to each market segment. It invests in sectoral leaders, with a special emphasis of investing in companies

Kotak Multicap Fund has completed four years with a major milestone: the actively managed equity scheme has now crossed the ₹20,000-crore AUM mark, while also doubling investor money since its launch in September 2021. At a time when equity markets have been volatile, this track record has pushed the fund into the top-performing multicap schemes in the country.

 

According to Kotak Mutual Fund, a lumpsum investment of ₹10,000 at inception (29 September 2021) would today be worth ₹20,678, translating into a CAGR of over 19%. This significantly outperforms the benchmark Nifty 500 Multicap 50:25:25 TRI, which delivered 14.48% CAGR during the same period.

 

The performance is equally strong for systematic investors. A ₹10,000 monthly SIP started at inception—total investment ₹4.8 lakh—would currently be valued at ₹7.61 lakh, generating a 23.68% CAGR.

 

The fund is jointly managed by Devender Singhal and Abhishek Bisen, and follows a disciplined multicap mandate allocating 25–50% each to large, mid and small caps. 

The top 10 holdings of the fund are

 

Key fund metrics show that the fund’s performance has not come at the cost of excessive risk:

 

• Portfolio turnover ratio: 39.20%
• Sharpe Ratio: 1.01
• Standard deviation: 15.29%
• The Sharpe Ratio of 1.01 reflects superior risk-adjusted performance relative to the benchmark and category peers.

 

Investment strategy: chasing earnings visibility

 

Kotak Multicap Fund follows a diversified, benchmark-aware approach investing in companies that are expected to deliver higher-than-industry earnings growth.

 

The fund house says it invests in sector leaders across large, mid and small caps, and the current allocation tilt is partly due to the recent reclassification of stocks, which has increased midcap and smallcap weight. Kotak says it will gradually adjust the allocation back toward its model weights. 

"The recent changes in the stock classification has taken our weight of midcap and smallcap higher than what was being maintained earlier, it is just the classification led change and not an earnest attempt to increase the allocation of mid/small caps in the portfolio. We shall try bring it down in line with our model as we move ahead," the MF said in a statement.

   

Market backdrop: volatility ahead but India remains resilient

 

Kotak Mutual Fund noted that the domestic equity market has been highly volatile in recent months due to:

 

• global geopolitical risks and wars
• trade tensions and tariff threats
• elevated global interest rates
• earnings downgrades in some FY26 sectors

 

However, the fund house believes the Indian economy is better placed than global peers. It expects:

• domestic-oriented businesses to remain resilient
• government to reduce GST rates to boost mass and mid-market consumption
• steady earnings recovery in select sectors, despite near-term volatility

 

Why the fund doubled money despite volatility

 

•  Balanced allocation across large, mid, and small caps
• Focus on growth-oriented companies with earnings visibility
•  Low portfolio churn (39.2%) reflecting conviction
• Robust stock selection in autos, financials, FMCG and IT
•  Favourable Indian market conditions despite global turbulence

 

Investors have rewarded this consistency—the fund’s AUM has now crossed ₹20,000 crore, making it one of the fastest-growing multicap funds in the industry. 

Disclosure: Entities controlled by the Kotak family have a significant holding in Business Standard Pvt Ltd