Kotak Debt Hybrid Fund: A Reliable Long-Distance Hauler

The investment philosophy and the calls made by fund managers often has a great bearing on the performance of a mutual fund. So, what one needs to look for is consistency in the fund’s performance. Kotak Debt Hybrid is one such fund. When we picked this small-sized fund in 2022, it was ranked 4th or 5th in terms of performance. Now, it leads the charts on a one-year basis. Portfolio The fund invests a maximum of 25 per cent in equity against the usual 15-20 per cent by other funds in the category. This higher allocation towards equity enables it to deliver better returns, but at the same time adds to its risk factor as well. Compared to other debt hybrid funds, it adopts an aggressive strategy, and this has provided investors with handsome returns. In terms of portfolio construction, on the equity side, the fund prefers to follow a core and a dynamic portfolio where some...