The Kotak Mahindra Group has announced the Indian Concentrated Growth Fund II, the firm's 2nd Concentrated Growth Fund for international investors.
The new closed-ended fund, will have a concentrated portfolio, primarily investing in 12-15 small and mid-cap stocks listed on the Indian stock exchanges. It will give investors an opportunity to participate in the growth of listed emerging companies in India. As a closed-ended concentrated fund, it will have a 'buy & hold' approach and will attempt to balance investment risk through deep understanding of businesses. The inherent stock picking strengths of the fund management team supported by a large in-house research team in India will enable the fund to identify such future performers.
The fund, which is a share class of Kotak Indian Opportunities Fund Limited - a Mauritius based umbrella fund - will be open for a limited period for subscription.
'The BSE mid cap index has fallen close to 30% from its high, with select stocks falling by as much as 50% from their peak,' says Shyam Kumar, director and CEO of Kotak Mahindar UK. 'This gives investors a brilliant opportunity to cherry pick and hold on to fundamentally strong emerging stocks. Being closed-ended with a life of about two years, the fund manager does not have the pressure to deliver monthly performance, focusing instead on returns over the life of the fund. In a volatile market this 'buy & hold' approach should do well for the investor.'
Background note: The Kotak Group is one of the leading financial services conglomerates in India catering to the financial needs of individuals and corporates, with significant presence in various businesses including commercial banking, stock broking, asset management, life insurance and investment banking. With a net worth of approximately RUP 25 billion, the group services over 1.6 million customer accounts through its 6700 employees, with offices in New York, London, Dubai Mauritius and a wide network of branches, franchisees, representative offices and satellite offices in 250 cities and towns of India.