How did Kotak Flexicap Fund perform against its peers?

Kotak Flexicap Fund achieved a 1-year return of 10.42%, outperforming the Flexicap category average of 6.82% as of December 31, 2026.

What was Kotak Flexicap Fund's strategy regarding cash holdings?

The fund maintained minimal cash reserves, holding between 1-3%, to stay invested in equities.

Why is keeping cash levels low important for Flexicap funds?

Maintaining low cash levels allows funds to better participate in market gains during upward trends, although it may increase exposure to short-term volatility.

Home / Business and Economy / Kotak Fund's Secret: Low Cash, High Returns

Kotak Fund's Secret: Low Cash, High Returns

10 Feb

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Summary

Kotak Flexicap Fund achieved 10.42% return in one year.
Fund maintained minimal cash, 1-3% holdings.
Category average return was 6.82% with higher cash.

Kotak Fund's Secret: Low Cash, High Returns

Kotak Flexicap Fund demonstrated superior performance by keeping its equity exposure high, achieving a 1-year return of 10.42%. This significantly outpaced the Flexicap category average return of 6.82% as of December 31, 2026. The fund's strategy involved maintaining minimal cash reserves, typically between 1-3%.

This contrasts with the broader Flexicap category, which saw its top funds by AUM hold an average of around 7% cash. While higher cash levels can offer protection during market downturns, they may lead to underperformance when markets trend upwards.