Kotak Multicap Fund Regular Payout Inc Dist cum Cap Wdrl INF174KA1HT7

Kotak Multicap Fund earns a High Process Pillar rating.

The leading factor in the rating is its parent firm's excellent long-term risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 3.5 stars. The parent firm's five-year risk-adjusted success ratio of 63% also influences the rating. The measure indicates the percentage of a firm's funds that have beat their respective category's median return for the period. Their relatively high success ratio suggests that the firm does well for investors and that this fund may benefit from that. The firm's five-year retention rate of 83% supports the rating as well.

This strategy skews toward smaller, more undervalued companies compared with its average peer in the Multi-Cap Morningstar Category. Examining additional factor exposure, this strategy has continually displayed high-yield exposure compared with Morningstar Category peers during recent years, holding more companies returning cash to shareholders via dividends or buybacks. High-yield stocks tend to be associated with more mature, profitable businesses that can grow as well as provide a stream of income. Such stocks could suffer, however, if setbacks force them to cut their dividends. In recent months, the strategy was more exposed to the Yield factor compared with its Morningstar Category peers as well. This strategy has also exhibited a tilt toward high-volatility stocks over these years, meaning it has invested in companies that have a higher historical standard deviation of returns. Such stocks tend to rise faster and fall harder than the broad market. High-volatility exposure contributes to stronger performance during bull markets, but often at the cost of losing more during downturns. Compared with category peers, the strategy also had more exposure to the Volatility factor in the most recent month. Additionally, this strategy has demonstrated a preference for high-momentum stocks in these years. Momentum is based on the premise that stocks that have recently outperformed will continue to outperform, and those that have underperformed will stay behind. Nevertheless, the fund's Momentum exposure was in line with peers in the latest month. More information on a fund and its respective category's factor exposure can be found in the Factor Profile module within the Portfolio section.

The portfolio is overweight in consumer cyclical and communication services relative to the category average by 5.4 and 4.1 percentage points, respectively. The sectors with low exposure compared with category peers are healthcare and basic materials, underweight the average by 5.4 and 3.4 percentage points of assets, respectively. The strategy owns 72 securities and is relatively concentrated. Specifically, 31.8% of the strategy's assets are housed within the top 10 holdings, compared with the category’s 29.3% average. And in closing, in terms of portfolio turnover, looking at year-over-year movements, 68% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.