In a dynamic equity market where performance varies across sectors and market caps many investors rely on flexicap funds for their adaptability and long term wealth creation potential. Among these the Kotak Flexicap Fund - Direct Growth has emerged as a consistent performer delivering an impressive ~18.6% CAGR over 5 years. This strong performance not only showcases its resilience across market cycles but also highlights the value of active fund management and flexible asset allocation Key Takeaways • Kotak Flexicap Fund - Direct Growth delivered ~18.6% CAGR over 5 years outperforming its benchmark • Dynamic allocation across large, mid and small caps helps manage volatility and capture growth • Large cap allocation (~74%) provides stability while mid & small cap exposure adds growth potential • Managed by experienced fund manager Harsha Upadhyaya known for disciplined stock selection • Direct plan offers a lower expense ratio enhancing long term return potential • Suitable for long term (5+ years) investors looking for balance, diversification and steady compounding • Ideal for SIP investors who want consistent performance across market cycles What Makes Kotak Flexicap Fund Stand Out? The Kotak Flexicap Fund is designed to offer investors an all weather investment approach. While markets move through phases of volatility, corrections and rallies the fund’s ability to dynamically shift between large cap, mid cap and small cap stocks gives it a unique advantage The fund currently invests predominantly in large cap stocks (around 74%) ensuring stability and lower volatility. At the same time its mid cap exposure of nearly 19% and small cap allocation of 4–5% provide an additional growth kicker creating an optimal balance between return potential and risk management The fund is managed by Mr. Harsha Upadhyaya a respected and experienced fund manager who has been managing Kotak’s flagship equity funds for more than a decade. His strong bottom up approach focus on quality businesses and disciplined stock selection have helped the fund navigate multiple market cycles successfully Strong 5 Year Performance - Outpacing Benchmarks For long term investors the fund’s 5-year performance is a meaningful indicator of consistency. Based on the official scheme data • Kotak Flexicap Fund (Direct - Growth) 5-year CAGR ~18.66% • Benchmark (Nifty 200 TRI - Tier 2) 5-year CAGR ~18.38% This consistent outperformance shows that the fund has delivered alpha through active management, strong stock picking, and timely allocation shifts across market capitalisations The Flexicap Advantage - Freedom to Move Across Market Caps Flexicap fund are uniquely positioned to respond to changing market environments. Unlike multicap funds which must maintain fixed minimum allocations across segments, flexicap funds like Kotak Flexicap have the freedom to increase or reduce exposure to large, mid or small caps based purely on opportunity and risk levels This provides benefits such as • Higher flexibility during volatile markets More allocation to large caps ensures stability • Aggressive positioning during growth phases More mid and small cap allocation captures high growth opportunities • Reduced reliance on timing the market Investors do not need to decide which segment will outperform the fund manager does this for them Why Investors Prefer the Direct Growth Option The Direct Growth plan of Kotak Flexicap Fund comes with a lower expense ratio compared to the regular plan. This reduction in annual expenses leads to better long term returns.

For long term investors especially those investing through SIPs this cost efficiency compounds meaningfully boosting the overall wealth creation potential Who Should Consider Kotak Flexicap Fund? • The Kotak Flexicap Fund may be suitable for • Investors seeking a long term (5+ years) wealth creation option • Those wanting a balanced equity exposure without selecting individual stocks • Investors who want a mix of stability (large caps) and growth potential (mid/small caps) • Individuals preferring the direct plan for lower costs and higher potential returns • SIP investors who want a fund that performs well across market cycles Benefits of Investing in Kotak Flexicap Fund • Dynamic allocation based on market conditions • Balanced risk return through large, mid and small cap mix • High potential for alpha generation due to active stock picking • Strong long term performance track record • Professional research backed management • Cost efficient direct plan structure • Reduced volatility compared to pure mid/small cap funds Conclusion The Kotak Flexicap Fund - Direct Growth stands out as a strong long term investment option for investors seeking a mix of stability, flexibility and growth. Its impressive ~18.6% 5-year CAGR backed by active fund management and the freedom to allocate across market caps, shows its ability to navigate diverse market conditions. With a balanced portfolio, experienced fund manager and lower expense ratio in the direct plan the fund offers long term wealth creation potential for both SIP and lump sum investors. For individuals looking for a resilient, research driven and performance oriented equity fund, Kotak Flexicap Fund continues to be a compelling choice FAQs 1) What type of fund is Kotak Flexicap Fund? It is an open-ended equity scheme that invests flexibly across large-cap, mid-cap and small-cap stocks. This dynamic structure helps the fund adapt to changing market conditions and maintain a balanced risk–return profile.

2) Who should consider investing in Kotak Flexicap Fund? It may be suitable for investors who: • Prefer long-term wealth creation (5+ years) • Want diversified equity exposure in a single fund • Are seeking a mix of stability (large caps) and growth opportunities (mid/small caps) • Are comfortable with market-linked volatility • Want an actively managed, research-driven investment approach 3) Is Kotak Flexicap Fund a good option for SIP investors? Yes. The fund’s flexible allocation approach can help SIP investors benefit from different market phases. SIPs can also help spread out investment risk and reduce the impact of market volatility.

4) What is the advantage of the Direct Plan for this fund? The Direct Plan typically has a lower expense ratio since it does not involve distributor commissions. This can help investors retain more of their returns over the long term through lower annual costs. Investors should choose between Direct and Regular plans based on their need for advice and guidance.

5) What are the key risks of investing in this fund? The fund carries equity market risks. While large-cap exposure adds stability, the mid and small-cap portion can be more volatile. Investors should be prepared for fluctuations and invest with a long-term perspective that aligns with their risk appetite.

6) How does a flexicap fund differ from a multicap fund? Flexicap funds have complete freedom to change allocations across large, mid and small caps based on opportunities and market outlook.

Multicap funds must maintain a fixed minimum allocation in each segment.

This flexibility gives flexicap funds more room to manage risk and capture opportunities.

Disclaimers Investors may consult their Financial Advisors and/or Tax advisors before making any investment decision.

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