Kotak Large & Midcap Direct Payout of Income Distribution cum Cap Wdrl INF174K01LG7

These analyst-driven model portfolios are built sectorwise using a combination of discounted cash flow models and quantitative metrics to assess company fundamentals. While this provides a structured framework, portfolio managers retain the discretion to deviate based on conviction and broader portfolio considerations.

Upadhyaya seeks growth-oriented companies with sustainable competitive advantages, those with strong brand equity, capable management, scalable business models, and consistent cash flows. Valuation discipline is central to his approach, combining absolute metrics like intrinsic value with relative comparisons against peers and historical trading ranges. This blend allows him to identify companies that are fundamentally strong but also attractively priced.

A top-down overlay complements his bottom-up stock selection. Sector weights are adjusted based on relative valuation, cyclical positioning, and growth outlooks both versus the broader benchmark and historical basis. While allocations to small- and mid-cap stocks typically result from stock-specific ideas, Upadhyaya also evaluates relative valuations across the market-cap spectrum to guide broad exposure shifts.

Risk controls are embedded in the process, with focus on corporate governance, liquidity, and downside protection. The portfolio is reviewed and rebalanced periodically to align with both benchmark dynamics and evolving fundamental views. Upadhyaya’s patient, quality-focused investment style reinforces the fund’s long-term orientation and process consistency.

The portfolio reflects Harsha Upadhyaya’s long-term conviction and willingness to take active sector bets within the fund’s internal guardrails. He builds a diversified portfolio of around 65–70 stocks to mitigate stock-specific risk, with the top 10 holdings typically accounting for about 35% of assets. While the fund follows a buy-and-hold approach, as evidenced by its relatively low turnover ratio, Upadhyaya actively adjusts position sizes within core holdings to capture valuation-driven opportunities.

The portfolio maintains a large-cap bias, typically allocating 50%–70% to large-cap stocks, with the balance in mid- and small-cap names. While small- and mid-cap exposure largely stems from bottom-up stock selection, Upadhyaya also considers relative valuation dynamics between market caps when determining exposure. Sector overweights are informed by macro trends, relative valuations, and long-term growth prospects, with positioning guided by both benchmark comparisons and historical context.

The fund continues to reflect a constructive view on the Indian economy, with structural bets in sectors such as industrials and materials, particularly cement, aligned with the home improvement and infrastructure themes. In financials, the manager prefers fundamentally strong private-sector banks with relatively lower capital intensity. IPO participation remains selective and conviction-driven, reserved for companies with strong governance and long-term growth potential. Overall, the portfolio construction reflects a disciplined, valuation-conscious approach with flexibility to act on high-conviction ideas within a defined risk framework.