A compounded annualised return of less than 3per cent since inception in March 2006 does not augur well for investors holding Kotak Lifestyle Fund in their portfolio. The fund’s unimpressive performance compared with its benchmark, CNX 500, over different time periods since inception warrants a re-look from investors to possibly switch to some of the top-performing diversified large-cap funds such as HDFC Top 200 and DSPBR Top 100 Equity.
The fund was launched with a view that it would benefit from an upward economic cycle with the consumerism expanding substantially. But the timing may have been a tad late. The fund’s investment objective is to invest across companies that are likely to benefit from changing lifestyle and rising consumerism.