The Indian bourses which have gained the most compared with any index in the world in the last one year have left the investors laughing all the way to the bank. However, for investors with limited resources, who wish to capitalize on the potential of various growing sectors, `` Kotak Opportunities Fund`` may be the fund they are scouting for.

Launched in August 2004, the fund is an equity diversified open-ended fund. The scheme aims to invest in a mix of large and mid cap stocks across sectors based on performance and potential of companies within the sectors. It has an objective of generating capital appreciation from a diversified portfolio of equity and equity related securities.

As Krishna Sanghvi puts it, ``Kotak Opportunities Fund is an aggressive diversified scheme which invests a minimum of 60% of its corpus in large cap stocks and remaining in mid-cap stocks. ``

The fund has generated returns of 61.9% since inception as against benchmark S&P CNX 500 return of 48.1%. As on Oct. 31, 2007, the fund registered an excellent growth of 71.6% and 63.1% over the last one and three year-periods respectively. For the same periods, the fund`s benchmark S&P CNX 500 generated returns of 54.3% and 47.1%.

The fund portfolio is well diversified across sectors and stocks. Looking at the portfolio, Reliance Industries, Jindal Steel & Power, Reliance Communications, ICICI Bank and State Bank of India are the top five holdings, comprising 19.83% of the total portfolio as on Oct. 31, 2007. Financial services, construction and industrial capital goods are the top three sectors comprising of 37% of the overall portfolio.

As on Oct. 31, 2007, the fund has added stocks like Dena Bank, Nagarjuna Constructions, Ranbaxy, Pantaloon Retail and Tata Chemicals among few others while it has exited from few stocks like Power Grid, HCL Technologies, Sun Pharmaceutical and Idea Cellular.

When queried about the stock picking strategy adopted by the fund, Krishna Sanghvi explains, ``The fund generally follows the bottom-up stock picking approach. However, we do not hold back from realizing opportunities from sectors which exhibit potential. ``

The assets under management for the fund were Rs 2.44 billion as on Oct. 31, 2007.

Kotak Opportunities Fund actively mixes up its portfolio and appears to book profits as and when the opportunity arises. Given this active portfolio management combined with a strategy to actively shift across sector and market caps, the fund would be more suitable for aggressive investors. It should not be the only fund in your portfolio, but rather an addition to perk up returns.

Choice selection of stocks over the past year boosted its performance. Reduction in exposure to IT sector and increased holdings in banking, construction and minerals over the past quarter were among the fund`s intelligent moves that generated good returns. The fund`s addition of Sesa Goa to the portfolio in August was a well-timed move as the stock moved up 85% since then.