Premium Access AIF Category III

KOTAK INDIA RENAISSANCE FUND 1 TRUST

Distributed through AltPort Experts. Comprehensive fund documentation can be accessed through our research team.
Category AIF Category III
Company Kotak Mahindra Asset Management Company Ltd
Fund Managers Nilesh Shah
Share: f x in w

About Company

Kotak Mahindra Asset Management Company Ltd

One of the leading Indian suppliers of portfolio management services, Kotak PMS (registered with SEBI), is a member of the prestigious Kotak Mahindra Group and runs under the direction of Kotak Mahindra Asset Management Company. The main purpose of Kotak PMS is to invest on our clients’ behalf to assist them reach their financial and personal goals.

Kotak India Renaissance Fund-I

Fund Snapshot

Investment Manager Kotak Mahindra Asset Management Company Limited
Fund Type Open-Ended Category III Alternative Investment Fund
Initial Contribution Minimum 1 Crore
Fund Strategy Long-Only Fund
Subscription Period Fortnightly*
Redemption Period Quarterly Exit with 30 Business Days Notice*
Exit Load 2% within 12 months; 1% between 12 months to 18 months from the date of subscription
Benchmark Nifty Midcap 100 TRI
NAV Frequency Once a Month
Tax Treatment For Tax Consideration, please refer to relevant section XI in the PPM *

The Asset Management Strength of Kotak

  • Over 20 years of fund management experience may be found at Kotak Mahindra Asset Management Company (KMAMC). In December 1998, it began operating. As of March 31, 2022, KMAMC ranked as the fifth-largest fund firm in India in terms of average quarterly AUM.
  • One of the first few private companies in India to be certified to administer pension funds
  • Providing solutions to clients in other countries for more than 15 years
  • The Monetary Authority of Singapore regulates Kotak Mahindra Asset Management (Singapore) Pte. Ltd., which is also a Registered Investment Advisor with the SEC in the United States.

Kotak’s Edge

With a focus on India and a worldwide presence, Team Kotak is dedicated to offering investors worldwide investment management services of the highest caliber.

  • ‘India-Only’ manager with strong ties to one of the biggest private banks, extensive network
  • Worldwide presence and a wealth of expertise in managing capital across asset classes.
  • 20 years of expertise managing assets for customers that are based overseas
  • Large teams present on the ground to ensure comprehensive and wide-ranging research coverage
  • A cautious, institutional investment strategy combined with effective risk management
  • Solid knowledge of Indian corporate governance frameworks
  • Successful asset management firm with over $50.46 in total assets under management
  • Offshore fund structures that are knowledgeable about global legislation

What Kotak Avoid

Practically speaking, it is harder to know what is good than what is terrible. Therefore, Kotak first concentrate on eliminating “poor” along the following 10 categories before deciding between the “cannot be rejected on any factor.” Avoid corporations with inferior traits and poorly controlled businesses.

They are seeking businesses with the following qualities:

  • Good theme
  • Large market opportunity
  • Favorable industry dynamics
  • Low potential for disruption
  • Sustainable competitive advantage
  • Strong management/background/strategy/growth
  • Strong corporate governance & Execution
  • Superior return on incremental Capital
  • Medium-term positive triggers
  • Reasonable Valuations

Key Themes

  • Big Getting Bigger, Strong Getting Stronger
  • Revival of Ind Manufacturing & Private
  • Real Estate & Home Improvement
  • Exports Opportunity
  • Digitization
  • Financialization

Investment Framework

  • Business: Size, Scalability, Competition, Sustainability
  • Management: Vision/growth orientation, Corporate Governance, Execution track record, Capital Allocation
  • Valuation: Growth at a reasonable price, ROE/ROCE/Free cash flow

Portfolio Construct

  • Listed & traded in India: ~4866 stocks
  • Market Cap of > Rs 1500 crs: 861 stocks
  • Under research coverage: 437 stocks
  • Businesses will profit from increased consumer discretionary spending, massive infrastructure investments, and a recovery in GDP. It will benefit businesses with minimal fixed costs, low leverage, and robust balance sheets.
  • ~ 25-40 Stock Ideas based on BMV

Dedicated In-house Research Team

  • An analyst runs exemplary portfolios. The sector model portfolio.
  • Calls for capitalization Internal algorithmic guidance for making allocation recommendations for large-and mid-cap stocks
  • Sectors
  • Interaction with industrial participants in the sector
  • Discussions with sector experts at brokerage houses on a regular basis
  • There are typically 8 to 12 management meetings per analyst or fund manager per month.

Stocks:

  • Investee company updates every three months
  • Businesses with direct coverage receive at least two visits per year
  • At least once a year, meet with the senior management.

Reuters Starmine

  • All sell-side research is available.
  • Choose the most competent sell-side analyst at the stock level

Strategy Synopsis

Objective

Although the Fund will diversify across market caps, it will lean toward mid- and small-cap investments.

Stock Holdings

25 to 40 stocks, chosen from the bottom up

Risk Mitigation 

Emphasis on free cash flows and management quality

Flexibility

Unconstrained w.r.t sector

Portfolio Focus – Investment Themes

  • Big Getting Bigger, Strong Getting Stronge
  • Revival of Industrial Manufacturing & Private sector
  • Exports Opportunity
  • Real Estate & Home Improvement
  • Digitization
  • Financialization

Key Sectors

  • Consumer Goods: 23%
  • Industrial Manufacturing: 17%
  • Industrial Manufacturing: 14%
  • Pharma: 10%
  • Information Technology: 7%
  • Chemicals: 5%
  • Cement & Cement Products: 6%
  • Consumer Services: 4%
  • Automobile: 4%
  • Metals: 3%
  • Fertilisers & Pesticides: 2%
  • Construction: 2%
  • Cash: 3%

Investment Objective

The Fund’s investment goal is to increase Beneficiaries’ wealth through long-term capital growth through investments in Portfolio Vehicles I that are listed on recognized Indian stock exchanges or (ii) that are expected to be listed. Although the Fund will diversify across market caps, it will lean toward mid- and small-cap investments. The investments may be made in debt instruments, and equity preferred securities, or other products as may be allowed under AIF Regulations.

Section: Fund Leadership
Meet the Fund Managers

Learn about the experienced fund managers responsible for investment decisions, portfolio strategy, and long-term fund performance.

Nilesh Shah

Nilesh Shah

Nilesh Shah is the Managing Director of Kotak Mahindra Asset Management Company and a part-time member of the Economic Advisory Council to the Prime Minister (EAC-PM). A gold-medalist Chartered Accountant with over three decades of experience, he has held leadership roles at Axis Bank, ICICI, and Franklin Templeton. Under his stewardship, Kotak AMC has grown into one of India’s largest fund houses. Renowned for his ability to simplify complex macroeconomics through relatable analogies, he is a prominent advocate for investor education and a key influence on SEBI and AMFI policies, consistently driving India's financialization and capital market evolution.

Section: Help & Support
Frequently Asked Questions

Find answers to common questions about fund investments, performance, portfolio strategy, and investor services.

What is the core investment objective and market capitalization focus of the fund? +

The Kotak India Renaissance Fund-I is an Open-Ended Category III Alternative Investment Fund (AIF) designed to generate long-term capital growth by investing in equity and equity-related instruments listed or expected to be listed on Indian exchanges. While the fund maintains the flexibility to diversify across the entire market spectrum, it maintains a strategic lean toward mid-cap and small-cap investments to capture high-growth opportunities. The portfolio is benchmarked against the Nifty Midcap 100 TRI, reflecting its intent to outperform through a bottom-up selection of 25 to 40 high-conviction stock ideas.

What defines the "Kotak Edge" in managing this specific AIF? +

The fund benefits from the institutional strength of Kotak Mahindra Asset Management Company (KMAMC), which brings over 20 years of experience and a deep understanding of Indian corporate governance frameworks. A key differentiator is their "India-Only" expertise combined with a global research presence, supported by a large on-the-ground team that conducts extensive primary research, including 8 to 12 management meetings per analyst monthly. This rigorous approach ensures comprehensive coverage and a cautious investment strategy that balances aggressive growth seeking with robust risk management and internal algorithmic guidance for capitalization calls.

How does the "BMV" framework guide the fund's investment process? +

The investment team utilizes a structured "BMV" (Business, Management, Valuation) framework to evaluate potential holdings and mitigate risks. Under "Business," they analyze size, scalability, and sustainability; "Management" focuses on vision, execution track record, and capital allocation; and "Valuation" ensures that growth is acquired at a reasonable price with a focus on ROE, ROCE, and free cash flows. This process involves a "negative screening" phase where the team first eliminates companies with poor governance or inferior traits across 10 categories before selecting businesses that demonstrate a sustainable competitive advantage and medium-term positive triggers.

What are the key investment themes currently driving the portfolio? +

The fund identifies six primary themes positioned to benefit from a recovery in India's GDP and increased infrastructure investments: "Big Getting Bigger" (market leaders gaining share), the revival of Indian manufacturing and the private sector, the real estate and home improvement cycle, the expanding export opportunity, digitization, and the financialization of Indian savings. Sectorally, the fund shows a significant preference for Consumer Goods and Industrial Manufacturing, which together account for approximately 40% of the portfolio, targeting businesses with low leverage and robust balance sheets that can profit from discretionary spending.

What are the liquidity terms and exit load structures for investors? +

As an open-ended Category III AIF, the fund allows for fortnightly subscriptions, but redemptions are processed on a quarterly basis, requiring a 30-business-day notice period. This structure is intended to align investor liquidity with the fund’s mid-to-small cap focus, which often requires longer holding periods to realize value. To discourage short-term churn and protect long-term beneficiaries, an exit load of 2% is applicable if redeemed within 12 months, which reduces to 1% for redemptions made between 12 and 18 months from the date of subscription, with no exit load thereafter.

Section: Contact Us
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