When it comes to building long-term wealth, Kotak Mutual Fund has consistently delivered strong performance across categories. In 2025, investors looking for growth can focus on Kotak’s best-performing schemes in the small cap and mid cap space, as these funds have the potential to outperform the broader market over a long horizon.
Kotak Small Cap Fund – High Growth Potential
The Kotak Small Cap Fund is one of the most popular funds in its category. It invests in fundamentally strong small-cap companies with the potential to become mid-cap or large-cap leaders in the future. Over the past 5 years, the fund has delivered 18–20% CAGR, making it a great option for investors with a long-term horizon of at least 7–10 years. However, small-cap funds can be volatile in the short term, so patience is key.
Kotak Emerging Equity Fund – Best Mid Cap Pick
For investors seeking relatively lower volatility but high growth potential, the Kotak Emerging Equity Fund is a top choice. It focuses on mid-cap companies with proven business models and strong growth prospects. Historically, the fund has delivered 14–16% CAGR over the long term, making it suitable for wealth creation goals such as retirement planning or children’s education.
Kotak Flexicap Fund – Balanced Diversification
If you want a fund that offers exposure to large, mid, and small-cap stocks, the Kotak Flexicap Fund is a solid option. It dynamically allocates across market caps based on opportunities, reducing risk while capturing growth. This makes it ideal for investors looking for a balanced yet growth-oriented portfolio.
Final Thoughts
Kotak Mutual Fund’s Small Cap, Emerging Equity (Mid Cap), and Flexicap Funds are among the best choices for 2025. Investors should match their risk appetite and time horizon before choosing a fund. Those with high risk tolerance can opt for the small cap fund, while moderate-risk investors can go for mid-cap or flexicap options.
Starting a SIP early and staying invested for the long term is the key to compounding your wealth with these top-performing Kotak funds.