Kotak Gold Fund (Growth)

Kotak Gold Fund (Growth) is an open ended Fund of Funds Scheme investing in Units of Kotak Gold Exchange Traded Fund. The returns earned on the Kotak Gold Fund (Growth) are in line with physical gold over the medium to long term, subject to tracking error. Hence, the scheme’s performance is completely dependent on the performance of the Kotak Gold Exchange Traded Fund. The prescribed asset allocation for the scheme is 95% to 100% towards Units of Kotak Gold Exchange Traded Fund. The remaining asset allocation of the corpus is towards fixed income securities such as Reverse repo and /or Triparty Repo on Government Securities or Treasury Bills and/or short-term fixed deposits and /or money market instruments. 

Investment Objective of Kotak Gold Fund (Growth)

The investment objective of Kotak Gold Fund (Growth) is to  generate returns by investing in units of Kotak Gold Exchange Traded Funds (ETFs). However, there is no assurance or guarantee that the investment objective of the scheme will be achieved. In agreement with the investment objectives, the asset allocation of the corpus is towards Units of Kotak Gold Exchange Traded Fund and fixed income securities. 

Scheme Details of Kotak Gold Fund (Growth)

Kotak Mutual Fund launched the Kotak Gold Fund (Growth) on March 25, 2011. The fund has been in existence for the past 11 years. 

NAV and Returns – The NAV of the fund as of 8th April 2022 is Rs  21.05. The risk-o-meter of the fund is moderately high. Hence, an investor must understand that their principal investment amount will be at moderately high risk. Owing to the fund’s objective, it invests a minimum of 95% of its assets in units of Kotak Gold ETF. Since its inception, the scheme has delivered a return of 7%.

Minimum Investment – The minimum amount for a lump sum investment is Rs 5,000. For a SIP the minimum investment amount is Rs 1,000.

Plans and Options – The scheme provides direct as well as regular investment plans. The payout options are Income Distribution cum capital withdrawal option (IDCW), Reinvestment of Income Distribution cum capital withdrawal option (IDCW) & Growth (applicable for all plans).

Expense Ratio and Exit Load – The fund charges an expense ratio of 0.53% on the units of the mutual funds. The fund charges an exit load. The investor can redeem 6% of the units before the expiry of 1 year from the date of allocation. An exit load of 1% is applicable for the redemption of units in excess of this 6% of the units within 1 year from the date of allotment of units of the fund. Moreover, the redemption of units would be done on a First in First out Basis (FIFO). The investors of the Scheme will bear dual recurring expenses and possibly dual loads, viz, those of the Scheme and those of the underlying Scheme. As a result, the pre-tax returns received by investors under the Scheme may be lower than those obtained by investing directly in the underlying Schemes in the same amounts.

Fund Manager – Abhishek Bisen manages the fund. Mr. Bisen is a BA in Finance and an MBA in Finance. Before joining Kotak Mutual Fund, he worked at Securities Trading Corporation Of India Ltd, where he was responsible for Fixed Income Product Sales and Trading as well as Portfolio Advisory. He also has 2 years of merchant banking expertise with a renowned merchant banking organization under his belt.

Other Details – There is no lock-in period for the scheme. So, an investor can redeem an investment anytime without any redemption limit. As of 8th April 2022, the AUM of Kotak Gold Fund (Growth) is Rs 1,264.416 cr. The fund benchmarks to Price of Gold TR INR. This fund is meant for investors with a minimum investment horizon of 5 years. 

Growth Review of Kotak Gold Fund (Growth)

Scripbox recommends Kotak Gold Fund (G) for investment within the gold mutual fund category. A gold mutual fund invests primarily in either gold exchange traded funds or stocks of companies that are engaged in mining, refining, or marketing gold and/or gold products.

Moreover, the fund is suitable for an investment duration of 5 years or longer to fulfil these investment goals. 

Kotak gold fund tracks performance of Gold. The fund invests in units of Kotak Gold Exchange Traded Fund. The fund is one of the largest assets under management funds in the category. Its AUM stood at Rs 1224 Cr as of Feb 2022.

According to scripbox selection methodology, the fund got the highest quarterly outperformance count among all funds in the category. It’s a parameter that is considered to measure the consistency of funds’ performance. In addition, the fund has a low expense ratio.

This gold fund has delivered a compounded annual growth rate (CAGR) of 13% return during the last four-year period. This is much better than other gold schemes in the same period

1. With the existence of 11 years, the fund has a sufficient history for analysis of past performance. Moreover, the fund’s track record is good. 
2. With an AUM or relative size of Rs 1,264.416 cr, the scheme’s relative size is medium within the category of the gold mutual fund.
3. Over these years, the fund has performed relatively moderately in comparison to other funds within the category of a gold mutual fund.

Fund Performance

Annualised Returns

Performance Ratio

Asset Allocation

Frequently Asked Questions

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